Gold's Bearish Momentum Builds from PRZ-Short SetupGold ( OANDA:XAUUSD ) started to decline exactly from PRZ (previous idea) as I expected in my previous idea . And with the loss of the Support zone($3,387-$3,357) we can expect further decline.
Gold is currently moving near the Resistance zone($3,387-$3,357 ) and the Potential Reversal Zone(PRZ) .
From the Elliott Wave theory , Gold appears to have completed a five-wave impuls e and we should expect corrective waves . Since the momentum of the second decline that broke the Support zone($3,387-$3,357) is high , the correction is expected to continue and Gold appears to be completing a pullback .
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The US Unemployment Claims Index was also released a few minutes ago, and let's take a look and examine the possible impact on Gold .
This better-than-expected data confirms a stronger U.S. labor market , reducing the urgency for the Fed to cut rates anytime soon .
Impact on Gold :
A resilient job market supports the hawkish stance of the Fed , which could keep downward pressure on Gold in the short term as yields and the dollar remain firm.
However, traders should remain cautious and watch for upcoming data and Fed commentary, which could shift the tone.
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I expect Gold to start falling from Potential Reversal Zone(PRZ) to the targets I have indicated on the chart. The first target could be around $3,319 .
Note: If Gold touches $3,401(the worst Stop Loss(SL)), we can expect the resistance lines to break and gold to rise further.
Gold Analyze ( XAUUSD ), 1-hour time frame.
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