• Gold broke powerful support area
• Likely to test the next support level 1700.00

Gold recently broke the powerful support area lying between the support levels 1760.00 and 1800.00 (which have been reversing the price from the start of July). The breakout of this support area accelerated the active short-term impulse waves iii, (iii) and 3 – which belong to the sharp intermediate downward impulse sequence (C) from the start of January.

Having recently reversed down from the resistance level 1760.00 (which is taken by the markets as the signal that further losses are likely for this instrument) – Gold is likely to fall further toward the next support level 1700.00 (former support from June and the target price for the completion of the active impulse wave 3).