FX.co ★ Strategy of the day on the GOLD

Gold is currently testing the intermediate resistance of its medium-term bullish channel at 1,682 leading to acceleration. A break of this level will allow it to reach the upper limit of its channel at 1,695.
Technical indicators do not provide clear signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
Gold is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1,682 with the 1st objective at 1,672 and then at 1,669. A breakthrough of 1,685 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,682 with the 1st objective at 1,692 and then at 1,695. A breakthrough of 1,679 will invalidate this scenario.