Technical outlook:
The 1-hour chart for gold has been presented here for near-term trade setups. The chart is indicating a potential drop towards the $1,635-40 area from here before finding support. The yellow metal rose sharply towards $1,670 last week. Potential still remains for a push through the $1,685-90 zone before the price turns lower again.
Gold might be poised to complete an Up Gartley around $1,635.40 before resuming its counter-trend higher towards $1,685 going forward. The metal is working on a larger-degree downswing between $1,670 and $1,618 levels as seen on the 1-hour chart here. Prices might want to retrace at least 62% of the entire drop, which is seen through the $1,685-90 zone.
Gold might have completed its first leg higher at $1,670 and is right now correcting lower to terminate its second wave lower through the $1,635-40 zone before resuming its final leg higher towards $1,685. Also, note that $1,685-90 is the Fibonacci 0.618 retracement of the above bearish downswing and hence, a high probability remains for a turn lower again.
Trading idea:
Potential rally towards $1,685 after dropping through $1,635-40.
Good luck!
Relevance up to 07:00 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
