GOLD Elliott Wave
For the last few days Gold was trading in a downward move, developing corrective (c) wave (coloured green) of the bigger (4) wave (coloured orange). Yesterday, during the European session we could observe ascending movement from 1740.90 toward the 1748.26 level. Therefore, during the New York session Gold did not manage to hold this level and price started pushing lower reaching a 1727.98 level. We can consider this move as the end of the 3 impulsive wave (coloured blue). Today this commodity is trading higher and we are expecting to see price around 1728.57 level in the next few days. 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). To reduce the risk, we can use invalidation at 1757.05 level as Stop Loss. Also it is necessary to monitor U.S. Core CPI m/m, CPI m/m, TIC Long-Term Purchases, Capacity Utilization Rate, and Industrial Production m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1701.4 (S2) 1715.5 (S1) 1727.2 (PP) 1741.3 (R1) 1753.0 (R2) 1767.1 (R3) 1778.8
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1746.31 with Stop Loss 1757.05 and Take Profit at 1728.57 are recommended.