FX.co ★ Analysis of Gold for May 26,.2022 - Breakout of the upside channel and potential for the bigger drop

Technical analysis:

Gold has been trading downside as expected but there is still space for potential test of lower references. Selling opportunities still preferable.

Trading recommendation:

Due to the strong downside cycle and the breakout of the upside channel, I see potential for the downside continuation.

Watch for potential selling opportunities with the downside objectives at the price of $1.836 and $1.811.

MACD oscillator is showing upside reading but decreasing in the upside momentum, which is sign for upside exhaustion.

Key resistance is set at the price of $1.870