FX.co ★ GOLD Intraday Technical Analysis

Gold approaches the upper limit of its medium-term bearish channel at 1.765 suggesting a decline. However, a break of these levels will free a large potential and initiate a violent bullish channel.

Technical indicators provide buy signals. But, until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility. Furthermore, the superior band strengthens the upper limit of its channel supporting the hypothesis of a violent movement in case of failure.

Gold is currently testing the upper limit of its channel, we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell at the level of 1.765 with the 1st objective at 1.755 and then at 1.752. A breakthrough of 1.767 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.765 with the 1st objective at 1.775 and then at 1.778. A breakthrough of 1762 will invalidate this scenario.