Technical analysis:
Gold has been trading sideways at the price of $1.673 in the mini channel (potential bear flag pattern), which is sign that we might see further downside continuation.
Trading recommendation:
Due to the channeling mode in the downside trend, I see potetnial for the further downside movement.
Watch for the potential selling opportunities in the case of the breakout of the mini channel.
Downside objectives are set at the price of $1.654 and $1.576
Stochastic oscillator is showing fresh downside cross from the overbought zone, which is good sign for further downside continuation.
Key resistance is set at the price of $1.680-$1.690
