FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the upper limit of its medium term bearish channel at 1,631 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.

Technical indicators do not provide clears signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.

According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,631 with the 1st objective at 1,642 and then at 1,645. A break through 1,628 will invalidate this scenario.