A correction upwards could start soon.
Under normal circumstances I would have assumed a retrace to around 1325 as a max but there is a glaring gap at 1342 so we might see an attempt to close the gap.
The move is probably wave (D) of a converging triangle correction that has been in progress since December 2015.
This upwards move should only be part of a correction and as I see it we could head for a lower low than 1204.
Aggressive moves downwards could be seen in the weeks leading up to the December FMOC with a rate hike expectation.
Should be an exiting few weeks ahead
Under normal circumstances I would have assumed a retrace to around 1325 as a max but there is a glaring gap at 1342 so we might see an attempt to close the gap.
The move is probably wave (D) of a converging triangle correction that has been in progress since December 2015.
This upwards move should only be part of a correction and as I see it we could head for a lower low than 1204.
Aggressive moves downwards could be seen in the weeks leading up to the December FMOC with a rate hike expectation.
Should be an exiting few weeks ahead
Comment:
A break below 1274 will see Gold head for the 1263 to 1265 area before the correction start
