Technical outlook:
Gold prices dropped through $1,805 during the New York Session on Tuesday before finding bids again. The yellow metal has risen through the $1826-27 levels at this point of writing and is expected to continue pushing higher. Bulls will now be poised to hold prices above the interim support of $1,805 to keep the structure intact over the medium term.
Gold prices are now probably into their last leg rally against the $1,805 mark and pushing towards $1,920. The first wave was completed around $1,880, while the second was terminated at the $1,805 level respectively. If the above structure holds well, bulls will be inclined to push through $1,920 in the next few trading sessions.
Gold is working on a larger degree downswing between $1,998 and $1,786 which is being retraced for now. The Fibonacci 0.618 retracement of the above drop is also seen through the $1,920 level as projected on the 4H chart. Furthermore, the past support turned into the resistance zone around $1,910. Hence, strong resistance should be seen around the $1910-20 levels for bears to come back in control.
Trading plan:
Potential rally through $1,920 against $1,780
Good luck!
