Gold is in a 3rd wave?
Gold is testing 1840-1850 a previously broken hard downside resistance zone. A long-term rising channel with well-defined breakout levels is being broken. A confirmed break above 1850 is now crucial for an upside reversal. A rejection here and follow-through below 1850 are required for the downside extension in a 3rd wave as we can see on the monthly chart.
On a daily chart, we can see that the pair is in consolidation retest just below key broken resistance 1850. A confirmed break above 1860 is now required for the downside invalidation. Our trading system is indicating a potential of 200-500 points of profit in the case of a confirmed rejection from 1840-1850. The short entry could be triggered here with the stop loss above 1860.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
