Gold is currently testing the intermediate support of its medium term bearish channel at 1,645 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1,620.
Technical indicators do not provide clears signal but are approaching the oversell zone supporting the assumption of a rebound. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity at the level of 1,645 with the 1st objective at 1,655 and then at 1,660. A break through 1,642 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com
