Gold’s choppy recovery from 1535.91 is losing upside momentum as seen in bearish divergence condition in 4 hour MACD. Focus is back on 1563.36 minor support. Break will argue that such recovery has completed. Corrective pattern from 1611.37 should then have started the third leg for 1535.91 and below. In case of another rise, upside is expected to be limited by 1611.37.
In the bigger picture, we don’t rule out that case that 1611.37 is a medium term top. It could be formed after rise from 1160.17 completed a five-wave sequence on bearish divergence condition in daily MACD. Hence, correction from 1611.37 should extend lower through 55 day EMA (now at 1528.45), before completion.
