Gold Elliott Wave
Last week gold was trading in a downward move, corrective wave (C) (coloured green) of the bigger wave (4) (coloured orange) was developing. During the Friday's Asian session we could observe strong descending movement from 1,714.10 towards the 1,700.10 level and we can consider this move as the end of the wave (2) (coloured green). Therefore, when development of the impulsive (3) wave (coloured green) starts, this commodity retraces back to 1,717.80 level. Gold is trading around 1,711.10 level at the moment and we are expecting to see price higher today. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1, with take profit 1 at 1,737.01 (161.8% of wave 1) and take profit 2 at 1,753.74 (261.8% of wave 1). To reduce the risk, we can use invalidation at 1,698.74 level as stop loss.

Support and Resistance
(S3) 1,683.7 (S2) 1,692.6 (S1) 1,702.2 (PP) 1,711.1 (R1) 1,720.7 (R2) 1,729.6 (R3) 1,739.2

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0355 with stop loss 1.0410 and take profit at 1.0209 are recommended.