The metal settled above the main resistance of the downside movement and also above 23.6% Fibonacci correction of the downside movement, which started at 1790.00 and ended at the bottom of 1612.00. This correction at 1653.00 became a strong support level, while consolidation above this level might trigger the continuity of the upside move as the metal attempts to form the CD leg of the suggested harmonic pattern. A breach of 1624.00 negates our positive outlook.
The trading range for today is among the key support at 1608.00 and key resistance now at 1700.00.
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 1653.00, targeting 1681.00, 1694.00 and 1700.00 and stop loss with 4-hour closing below 1638.00 might be appropriate.|