Gold continued its upside recovery which started at 1665.00 touching 38.2% Fibonacci retracement of the upside wave from 1603.00 to 1803.00 as seen on the provided four-hour chart. We can see how SMA 50-colrored in red- and SMA 20-blue- have provided the metal with support since the opening of this week, but there are two main technical catalyst that are contraditing with the above mentioned positive factor as follows:
The sensitivity of the current levels.
The potential negative divergence which is under formation on Stochastic.
Thereby, we are obliged to stay aside until the metal presents an actionable setup to pinpoint the upcoming big move. Finally, breaching 1705.00 will bring the negative picture back into focus.
The trading range for today is among the key support at 1650.00 and key resistance now at 1785.00.
The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
Weekly ReportSupport1715.001707.001703.001698.001687.00Resistance1728.001732.001735.001753.001765.00RecommendationBased on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move.