FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the upper limit of its medium term bearish channel at 1632 and seems to initiate a decline. However, a breakthrough these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide sell-signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1632 with the 1st objective at 1645 and then at 1650. A breakthrough 1629 will invalidate this scenario.