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Gold is currently testing the intermediate support of its medium term bearish channel at 1,635 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1,595.
Technical indicators provide sell-signals but are approaching the oversell zone supporting the assumption of a rebound. 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 will provide a bullish opportunity at the level of 1,635 with the 1st objective at 1,645 and then at 1,650. A break through 1,632 will alter this scenario.
