FX.co ★ Analysis for Gold 04.10.2020 - Major resistance zone ($1690-$1.700) is on the test, watch carefully for the price action around it to confirm further direction

Corona virus news:

Confirmed coronavirus deaths around the world have exceeded 95,000 and there are at least 1.6m cases. Countries including Spain and Italy report their rates of infection are beginning to plateau while others, such as Russia, announce record 24-hour rises. Many countries now enter the Easter and Passover holidays, or look towards the Ramadan month of fasting, as citizens are told to continue to abide by physical distancing measures.

Warnings. Despite Trump's claims, the World Health Organization warned of the human-to-human transmission risk as early as 10 January and urged precautions, though it did tweet days later appearing to contradict itself.

Technical analysis:

Gold has been trading upwards. The gold has reached the main resistance zone at the price of $1.690. The zone from $1.690-$1.700 is very important pivot zone for the further development on the Gold.

Trading recommendation:

The eventual rejection of the resistance zone would lead for potential downside rotation towards the level at $1.641

The eventual breakout with the high volume will lead the Gold towards the level at $1.750 (Weekly chart swing high.

Stochastic oscillator is showing potential overbought condition bust still with no new fresh bear cross.

Major resistance zone is set at $1.690-$1.700.

Support levels are set at the price of $1.6372 and $1.641/