FX.co ★ Gold Wave analysis for August 11, 2014

Gold price has completed 5 waves up from $1,280 and has started its pullback since Friday. I expect more upward moves in Gold price that could reach $1,350 as long as price is above $1,280. The trend is up in the short term. Momentum is bullish and it is now clear that an important low has been made at $1,280. It is a crucial support that bulls must hold.

Gold price is above the Ichimoku cloud. Gold price as shown in the 4 hour chart has completed 5 waves up and has retraced 38% of the upward move so far. We could still see the price pullback towards $1,300 where the 61.8% Fibonacci retracement is found. I expect that after the corrective decline is over, a new upward move to push price towards $1,350.

The daily chart is bullish again as price has moved back above the Ichimoku cloud. After breaking the downward sloping wedge, I expect Gold price to at least reach the red boundaries of the triangle pattern where we will have more clues for the bigger structure of Gold price. In conclusion, we could see a pullback towards $1,300 that I believe will be a buy opportunity with $1,280 as a stop and $1,350 as a target. Breaking below $1,280 will push price at least towards $1,270 where critical support is found.