Technical outlook:
Gold prices are preparing to rally through $1,965 and up to $2,000 mark in the next leg if its corrective rally. The yellow metal seems to have carved a meaningful downswing between $2,070 and $1,895 in the past few trading sessions. It is now working upon the above downswing as the corrective wave is expected to gather pace.
Gold prices might have carved interim low around the $1,895 mark as prices bounced back through $1,950 thereafter over the last week. The recent drop to $1,921 could be complete and bulls would be poised to push through $1,965 and $2,000 mark going forward. Please note that fibonacci 0.618 retracement of the above drop is also seen around $2,000 level.
High probability remains for a bearish reveral if prices manage to reach the $2,000 handle. Gold is set to face strong resistance around $2,000-35 zone as bears would be inclined to come back in control. Only a break below $1,895 form here would open the door to test $1,880 support as marked on the 4H chart here.
Trading plan:
Potential counter trend rally to reach up to $2,000 against $1,895
Good luck!
