Gold is currently testing the intermediate resistance of its medium term bearish channel at 1,645 and is about to decline. However, a break through these levels will cause a release of significant potential enabling to reach its upper limit in the point 1,668.
Technical indicators do not provide clear signals as long as resistance level is unbroken, the assumption of a decline is true. Bollinger bands are much discarded due to the strong decline that took place. The situation is likely to stabilize in the nearest future.
According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,645 with the 1st targets seen at 1,655 and 1,658 levels. If the level 1,642 is passed through, the prospect scenario will be altered.
The material has been provided by Instaforex Company - instaforex.com
