Corrective downswing of gold is fully completed and bullish close of yesterday’s session suggests an opportunity for a start of new trending upward movement. We can’t regard yesterday’s bar a direct long-setup, but bulls are quite capable of renewing local highs.
Local structure keeps downward tone, but given the conclusions from daily chart there is quite a big likelihood of break of the closest high at 1651.95-1654.70 (black arrow).
But while such break didn’t take place officially, bears will keep the chance for new downswing to 1632.65.
Main scenario: Growth above 1651.95-1654.70 in direction 1660.00-1665.00.
Alternative scenario: In case of inability to overcome 1651.95-1654.70 - decline to 1632.65.
Above 1651.95-1654.70 - longs to 1660.00-1665.00.
Below 1651.95-1654.70 - shorts to 1632.65.