I hope the sun is shining wherever you find yourself!
Things are looking up for GOLD at last!
We may well have just created a very important low this week, it is now time to focus on this turn to see if we can nail the beginning of this turn.
On to the business at hand.
UPCOMING RISK EVENTS:
USD: Crude Oil Inventories, FOMC Meeting Minutes. EUR: Flash Manufacturing PMI, Flash Services PMI. GBP: CPI y/y. JPY: N/A.
My Bias: Long to a new all time high above 1827. Wave Structure: Impulse structure to a new all time high. Long term wave count: wave [iii] above 1666.
GOLD is starting to look better in the short term. Downside momentum has pretty much died this week.
The 4hr chart is showing an bullish momentum setup in play. With bullish divergence in both RSI and MACD. The price is again approaching the 50MA, which lies at 1299.
Also, notice that the price has reached the 61.8% retracement level of the previous wave [i] green in a clear abc correction. So far the price has found some support at that level.
The initial signs are good. As for the short term elliott wave count, it is too early to say just yet. A higher low above 1282 and a further break of 1300 will create the beginning of a five wave pattern higher.
Once we see a five wave pattern to the upside off the lows, this will create the bullish elliott wave indicator signal that we have been waiting for.
Tomorrow; Watch 1300 for a break in a possible wave '3' pink.
Read more by Enda Glynn