GOLD – pullback from 3-week high found a footstep but the downside is still vulnerable
Gold price fell after bulls hit three-week high on Monday but faced multiple rejections at pivotal Fibo barrier at $3373 61.8% of $3452/$3246 bear-leg).
Pullback was so far short-lived as fresh bears found a footstep at $3350 double-Fibo support (broken 50% retracement of $3452/$3246 / 38.2% of $3310/$3374 bull-leg).
Formation of hourly higher base boosts optimism, though more work at the upside will be required to confirm reversal.
Fresh recovery has so far retraced 38.2% of $3374/$3347 pullback, with extension and close above $3360 (50% retracement/ hourly Tenkan-sen) seen as minimum requirement to keep near-term bias with bulls, as hourly studies are still mixed (the action is underpinned by ascending hourly cloud and hourly Tenkan / Kijun-sen are in bullish setup, but 14-h momentum is still in the negative territory).
Caution on failure to clear $3360 that would keep the downside at risk of retesting $3350 pivot, loss of which to weaken near-term structure.
Res: 3360; 3365; 3374; 3392
Sup: 3347; 3342; 3338; 3334