Morning Report

The downside movement continues, affected by the suggested harmonic patterns, which in spite of the conflict between the bullish and the bearish 0-5 structures, but both of them require the continuity of the downside movement, where the bullish pattern (shown in blue) is forming the CD leg, while the bearish structure (shown in pink) is forming the BC leg as shown above. We expect the metal to reach areas around 1656.00 and maybe 1624.00. But, we should observe the pair's movement around these critical levels.

The trading range for today is among the key support at 1624.00 and key resistance now at 1735.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

***New York Candlesticks***

Previous Report

Weekly Report

 

Support
1673.00
1662.00
1657.00
1644.00
1624.00

 

Resistance
1687.00
1694.00
1703.00
1706.00
1711.00

 

Recommendation
Based on the charts and explanations above our opinion is selling gold below 1687.00, and take profit in stages at 1657.00, 1644.00 and 1624.00 and stop loss with 4-hour closing above 1703.00 might be appropriate.