FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the upper limit of its medium-term bearish channel at 1,783 suggesting a decline. However, a break of these levels will initiate a bullish channel.
Technical indicators do not provide clear 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.

Gold is currently testing the upper limit of its channel where we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell on the level of 1,783 with the 1st objective at 1,773 and then at 1,770. A breakthrough of 1,786 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 1,783 with the 1st objective at 1,793 and then at 1,797. A breakthrough of 1,780 will invalidate this scenario.