At the moment Gold is testing the intermediate support of its medium term bearish channel in 1631 and is expected to rebound. However, in case these levels are passed through, it will decline to the lower limit of this one to 1590.
Technical indicators do not provide clear signals but as long as the support remains unbroken, the assumption of a rebound 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 indicates a bullish opportunity on levels of 1631 with 1642 and 1645 seen as first objectives. In case the level 1628 is passed through, the proposed scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
