Consolidation above the level of 1656.00 again might trigger the completion of the 0-5 harmonic pattern, where our harmonic outlook suggests an upside move this week despite the type of this pattern. Our positive outlook is driven by the possibility that the metal might be forming the CD leg of the bearish 0-5 harmonic pattern or by the possible completion of the bullish 0-5 harmonic pattern as shown above on the charts. Our suggested scenario remains valid as long as gold is stable above 1656.00, but a breach of 1624.00 weakens our outlook.
The trading range for this week is among the key support at 1590.00 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***
|Recommendation||Based on the charts and explanations above our opinion is buying gold above 1645.00, targeting 1688.00, 1694.00 and 1703.00 and stop loss with 4-hour closing below 1624.00 might be appropriate.|