Gold’s breach of 1755.29 resistance today argues that it could be completing a double bottom reversal pattern (1676.65, 1677.69). Sustained trading above 55 day EMA (now at 1765.07) should confirm short term bottoming at 1676.65. That should also be the first sign that correction from 2075.18 has completed with three waves down.
In this bullish case, Gold should rise further to 38.2% retracement of 2075.18 to 1676.65 at 1828.88 first. Break there will target channel resistance at 1887.56. However, failure to sustain above 1755.29 will retain bearishness, for extending the correction from 2075.18 through 1676.65 at a later stage.
