FX.co ★ Strategy of the day on GOLD

Gold is currently testing the intermediate resistance of its medium-term bearish channel at 1,622 suggesting a decline. However, a break of this level will allow it to reach the upper limit of its channel at 1,646.
Technical indicators provide buy signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
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 1,622 with the 1st objective at 1,612 and then at 1,610. A breakthrough of 1,625 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 1,622 with the 1st objective at 1,632 and then at 1,635. A breakthrough of 1,619 will invalidate this scenario.