Bearish inside bar was formed by the end of yesterday’s session. It could be a strong short-signal if upswing was fully completed. However such swing in the structure is absent so far meaning there is a high probability of yesterday’s high renewal (1557.88). Once it’s accomplished, the swing will be completed and bears will get the chance to regain control (see the black trajectory). If bulls keep the pressure, gold might recover to 1590.00-1600.00 (blue arrow).
Local structure of the market is a bit chaotic. Current phase is descending and it’s potentially limited by support at 1551.25, where we can again consider long trades reckoning on movement toward 1557.88. Resistance 1557.88, as we see, is quite strong, therefore further bearish scenario looks preferable (see the black trajectory).
So, we expect decline to 1551.25, then growth to 1558.00 and new downward reversal to 1555.00.
Longs from 1551.25 to 1558.00.
Shorts from 1558.00 to 1555.00.