Gold drops sharply in US session and breaks 1882.07 minor support. That should confirms short term topping at 1916.00, on bearish divergence condition in 4 hour MACD. The development should also double confirm underlying momentum in the greenback.
Anyway, deeper pull back is now likely in Gold, towards 55 day EMA (now at 1820.12), which is close to 38.2% retracement of 1676.65 to 1916.06. As long as this level holds, we’d hold on to the bullish view that correction from 2075.18 has completed with three waves down to 1676.65. That is, rise from 1676.65 should resume sooner rather than later to retest 2075.18 high.
However, sustained break of the EMA will open up the case that correction from 2075.18 is extending with another falling leg. Deeper fall would be seen towards 1676.65 low instead.
