FX.co ★ Analysis of Gold for February 10,.2021 - Broken upside chnanel and potential for drop towards $1.785

ECB's de Cos: ECB prepared to adjust all instruments as needed to reach inflation target

Comments by ECB policymaker, Pablo Hernandez de Cos

• Euro area economic recovery is fragile, faces downside risks
• This is due to uncertainty surrounding evolution of the pandemic
• Ample monetary stimulus continues to be essential

This isn't anything out of the ordinary but at least there's no specific mention of the euro exchange rate in the latest bunch of remarks here, so there's that.

Further Development

Analyzing the current trading chart of Gold, I found that there is the breakout of the well developed upside channel, which is sign that sellers are taking control over buyers.

Watch for selling opportunities with the downside target at $1,785

Stochastic oscillator showing overbought condition and the bearish divergence, which is another sign for further downside movement.

Key Levels:

Resistance: $1,845

Support level: $1,785