Gold is currently testing the intermediate support of its medium term bearish channel in 1637 indicating a possible rebound. However, in case these levels are broken through, the pair will decline to its lower limit 1595.
Technical indicators do not provide clear signals but as the support is unbroken, the rebound is most likley to take place. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Considering previous events, the market indicates a bullish opportunity at levels of 1637 with 1st objectives seen at 1650 and 1655 levels. A breakdown in 1634 will reverse this scenario.
The material has been provided by Instaforex Company - instaforex.com
