Gold is currently testing the intermediate support of its mid-term bearish channel at 1.550 suggesting a rebound. However, a break through this level will trigger a decline to a lower limit – 1.510.
Technical indicators provide BUY signals and are approaching the oversold 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 the short term.
According to the previous events, the market will provide a bullish opportunity at the level of 1.550 with the 1st objective at 1.560 and then at 1.565. A break through 1.547 will alter this scenario.
The material has been provided by Instaforex Company - instaforex.com
