The Gold has increased further and has resumed the last two days bearish candle, has climbed as much as 1198.24, but has failed to hit an important dynamic resistance, could increase further if the USD will resume the correction phase. As you already know, the greenback is into a corrective phase, which is helping the Gold price to increase again on the short term, could climb above the 1200 psychological level till the end of the week.
The current rebound was expected because the dollar was expected to drop after the impressive rally from December, technically the gold was expected to increase as well because has found very strong support, has touched an important dynamic support, which has rejected the rate, remains to see how long will be this bounce back, because the perspective remains bearish as long as will be trapped below some important resistance levels.
The price movement could be influenced by the fundamental events in the coming days, the US is to release some high impact data, such as the Unemployment Claims, Retail Sales, Core Retail Sales, the PPI or the Prelim UoM Consumer Sentiment. Moreover the FED Chair Yellen will speak on Friday.
The price has extended the latest gains, but has failed to reach the 150% Fibonacci line (ascending dotted line) where he may find resistance again, the next major upside target is at the median line (ML) of the descending pitchfork. The median line (ML) is acting as a magnet and is expected to attract the price, remains to see what will happen when the rate will touch this level because a breakout above this obstacle followed by a retest will help the sentiment to change.
However a rejection from the median line (ML) will send the rate down again, technically remains under pressure as long as is trading below this obstacle, but a retest of the first warning line (WL1) of the ascending pitchfork could force the price to jump above the median line (ML), we could have a buying opportunity only if the price will test the conflunece area formed at the intersection between the WL1 with the ML.