Gold incline yesterday, supporting the bullish 0-5 harmonic pattern. Stochastic is still positive and supports our expectations, but at the same time, the metal is facing the EMA 50, which is around 38.2% Fibonacci correction as shown above at 1690.00. We expect the upside move is still valid today, affected by the harmonic structure shown above, but consolidation above 1690.00 is required to support our outlook.
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***
|Recommendation||Based on the charts and explanations above our opinion is buying gold around 1673.00, targeting 1690.00, 1694.00 and 1709.00 and stop loss with 4-hour closing below 1654.00 might be appropriate.|