FX.co ★ Gold technical analysis for January 22, 2016

Gold price continues to trade around $1,100 without any clear direction despite the fact that it remains inside an upward sloping channel. The level at $1,130 remains our short-term target, while the weekly chart confirms that we should expect another move higher.

Red lines - bullish channel

Green rectangle - target area

Gold price is trading above the - hour Ichimoku cloud. The price is moving towards higher highs and higher lows. A short-term trend is bullish but not in an impulsive form that would imply a longer-term reversal. So, if prices reach $1,130,we should think of taking profits and exiting long positions because a rise from $1,050 could just be a part of a bigger upward correction.

In the weekly chart, gold prices are trapped between the kijun- and tenkan-sen indicators. The support and resistance levels are clearly visible on a weekly basis, so a weekly close above or below them will set the tone for the trend over coming weeks.