Gold is currently testing the intermediate support of its medium term bearish channel at 1,637 suggesting a rebound. However, a break through these levels will entail a return to the lower limit of this one to 1,600.
Technical indicators do not provide clear signals but until that the support is not broken, 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 at the levels of 1,637 with the 1st objective of 1,650, then 1,655. A break through 1,634 will alter the scenario.
The material has been provided by Instaforex Company - instaforex.com
