GOLD Elliott Wave
Yesterday gold was trading in a sideways move, developing final 5 wave (coloured blue) of the bigger impulsive (3) wave (coloured green). During the Asian and European sessions we could observe a descending movement towards the 1688.85 level. Therefore, during the early New York session this commodity found support at 1687.35 and the price reached a new high at 1698.18. We can consider this move as the end of the impulsive (3) wave (coloured green) and we are expecting to see the price around 1655.05 soon. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with Fibonacci retracement (1547.61-1698.18), with Take Profit at 1655.05 (38.2% of wave 3). To reduce the risk, we can use invalidation at 1704.80 level as Stop Loss. Also it is necessary to monitor the U.S. Revised Nonfarm Productivity q/q and Revised Unit Labor Costs q/q data that can change the rate of the pair.
Support and Resistance
(S3) 1676.3 (S2) 1681.9 (S1) 1690.3 (PP) 1695.9 (R1) 1704.3 (R2) 1709.9 (R3) 1718.3
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1685.95 with Stop Loss 1704.80 and Take Profit at 1655.05 are recommended.