General overview for 11/07/2016:
(previous analysis of this pair can be seen here)
The current situation on #GOLD market is clearly a bullish upward wave development. After the low at the level of $1045, the market has made a five wave impulsive structure labeled as 1/A and then a three-wave corrective counter-trend pattern labeled as wave 2/B. If this labeling is correct, then the market should now make a wave 3 to the upside in sudden, impulsive fashion. Otherwise, the corrective structure in wave 2 will evolve into more complex and time-consuming pattern. The key level for bulls is the zone between the levels of $1307 – 13018 as any breakout lower will make the corrective cycle in wave 2 more complex. First invalidation level for the bullish impulsive scenario is at the level of 1253.
1432 -1391 – Weekly Supply
1377 – Local High
1318 – 1307 – Key Level
1253 – Invalidation Level #1
1202 – Invalidation Level #2
All long-term buy order should be still kept open. There is a possibility to add to the current long positions when the market will be trading around the key level zone*.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.