Gold is currently testing the intermediate support of its medium term bullish channel in 1635 suggesting a rebound. However, a breakdown of these levels will entail a return to its lower limit in the point 1600.
Technical indicators do not provide clear signals but as ling as the support level remains unbroken, the assumption of a rebound is relevant. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity at level 1635 with 1st objective seen at 1645 and 1650 levels. A breakdown in 1632 will reverse this scenario.
