Gold: Park the brake at 61.8% fib reaction
The yellow metal price has been under pressure since mid-April. Gold traced out a medium-term top near 1366.00$ in Jan-April via the formation of a double top pattern. We have spotted the same trends visible on AUDUSD, NZDUSD, and EURUSD which have completed the 161.fe (A-B-C corrective pattern).
The yellow metal's retracement pauses at the 61.8% fib reaction which coincided with the 17-month ascending trendline. Below here, the focus will move down to parallel support zone 1260.00-1263.00$ which coincides with the A-B-C corrective pattern 161.8%.
At this junction (1263.00-1260.00) we believe the price will change the direction to 1296.00-1300.00 initially.
Supports: 1263.00-1260.00<1245.00
The yellow metal's retracement pauses at the 61.8% fib reaction which coincided with the 17-month ascending trendline. Below here, the focus will move down to parallel support zone 1260.00-1263.00$ which coincides with the A-B-C corrective pattern 161.8%.
At this junction (1263.00-1260.00) we believe the price will change the direction to 1296.00-1300.00 initially.
Supports: 1263.00-1260.00<1245.00