Gold is currently testing the intermediate resistance of its medium term bearish channel at 1,650 suggesting a decline. However a break of these levels will allow it to reach the upper limit of its channel at 1,665.
Technical indicators provide buy-signals but until that 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.
According to previous events, the market indicates a bullish opportunity as soon as the gold will have broken its resistance at 1,650 with the 1st objective at 1,660, and then at 1,665. A break of 1,647 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com
