Bears couldn’t renew local low of the structure yesterday having met strong support at 1850.27-1852.58. This puts in question further possibility of decline and makes a scenario of gold recovery in direction 1881.84 and 1895.00 more likely.
On the hourly chart gold so far is traded above the broken pivot-zone 1863.42-1864.65, though downswing is fully formed and got bearish close. Thus the mentioned PPZ is a key zone today: its downward break will put the quotes down to 1852.39 again (black arrow) and upward bounce will provide buyers with the opportunities for attacking to the upside to 1883.92-1886.09 (red arrow).
Main scenario: Growth from 1863.42-1864.65 to 1883.92-1886.09.
Alternative scenario: In case of decline below 1863.42, we expect movement to 1852.39.
Above 1863.42-1864.65 - longs to 1883.92-1886.09.
Below 1863.42-1864.65 - shorts to 1852.39.