GOLD Elliott Wave
Since our last analysis gold was trading in a downward move like we expected, final 5 wave (coloured blue) of the bigger wave (C) (coloured green) is developing. During the yesterday’s Asian and European sessions we could observe strong descending movement from 1751.37 towards the 1737.38 level. Therefore, during the early New York session gold did not manage to hold this level and price retraced back to 1745.50 level. Today this commodity continued trading in a bearish mood and we are expecting to see price at 1713.34 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 4, we can define the potential targets with measuring wave 4 with Take Profit at 1728.57 (100% of wave 4) and Take Profit 2 at 1713.34 (161.8% of wave 4). To reduce the risk, we can use resistance at 1739.36 level as Stop Loss. Also it is necessary to monitor U.S. Existing Home Sales data that can change the rate of the pair.
Support and Resistance
(S3) 1722.3 (S2) 1730.6 (S1) 1736.7 (PP) 1745.0 (R1) 1751.1 (R2) 1759.4 (R3) 1765.5
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1733.70 with Stop Loss 1739.36, Take Profit at 1728.57, and Take Profit 2 at 1713.34 are recommended.