As we see, resistance at 1784.68-1789.49 proved impassable for the bulls that became a reason for closing yesterday’s session by a bearish reverse bar.
Thus, we can talk of a start of corrective downswing. Its minimum target appears the 1751.50-1755.34 territory (black trajectory).
In case this zone won’t provide support to the market, correction might be substantially deepened (red scenario on the chart).
Local trend of the gold market so far keeps an upward structure, but remains in the stage of corrective swing building. Support zone 1765.15-1769.27 looks very strong, but according to conclusions drawn on the daily chart it’s unlikely that the asset could recover higher than to the local cluster zone 1779.12-1783.00 (black arrow).
Extension of downward correction from current levels in direction 1749.00 might be an alternative scenario (red arrow).
Main scenario: Upward pullback from 1765.15-1769.27 to 1779.12-1783.00 and after that decline will resume.
Alternative scenario: Extension of decline from current levels in direction 1749.00.
Pending shorts from 1779.12-1783.00 to 1749.00.
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