US stocks retested the lows yesterday, so risk-off is still here to stay. A potential reversal depends on US economic data release. Philly Fed Manufacturing Index, Unemployment Claims and Existing Home Sales is something we should be watching later. Theoretically speaking, the US dollar can stay in a downtrend if US stocks stay in a bearish mode.
Gold is recovering in the 4h chart, now seen in the third leg of recovery, which can be a final leg of a wave B) rally from $1751. Notice that metal approaching significant resistance near $1840/$1850 where we see the 78.6% Fibonacci retracement, plus wave C equals A in that area as well.
This appears to be like a strong technical resistance, so be aware of a potential slow down, especially if higher degree wave E from $1877 is incomplete, which belongs to a triangle. A drop back towards $1805 will be bearish, while bullish price action would need a rise above $1877.
