FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate support of its medium-term bearish channel at 1,685 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 1,675.
Technical indicators do not provide clear signals and until the support is not broken the assumption of a rebound is most likely. Bollinger bands have stabilized showing a more regular volatility.
Gold is currently testing the intermediate support of its channel, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1,685 with the 1st objective at 1,695 and then at 1,697. A breakthrough of 1,683 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell gold as soon as it is broken through its support of 1,685 with the 1st objective at 1,675 and then at 1,673. A breakthrough of 1,687 will invalidate this scenario.