Good day traders! Let’s look at gold and german dax.

Gold is unfolding a bearish reversal away from the highs, where we labeled end of wave B. Current five-wave drop now indicates more weakness to follow, but after a pullback takes place (we are talking about wave ii). That said, blue wave one can be now trading in final stages, meaning a three-wave recovery can come in play in sessions to come, with possible resistance near the Fibonacci ratio of 50.0 or 61.8.

Gold, 1H

German DAX is breaking higher, away from the previous triangle correction that was located in wave 4. We now see a five-wave rally in progress, as wave 5, that can search for a top near the 13163 level and later make a new three-wave reversal lower. On that note, a breach below the 12991 level would suggest a bearish continuation.

German DAX, 1H