Thing trading with a slight upside bias seen yesterday, but trading remains below the main resistance at 1656.00 and below point B bottom for the possible harmonic pattern. Stochastic has reached quickly levels near overbought area, and that may support another downside attempt to test 1608.00, which if taken we may see a downside move that reaches 1585.00-1580.00. Accordingly, we expect a downside move today supported as well by the 20 and 50 exponential moving averages.
The trading range for today is among the key support at 1580.00 and key resistance now at 1673.00.
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, we recommend selling gold around 1638.00 targeting 1608.00,1598.00 and 1585.00. Stop loss four hour closing above 1656.00.|