Gold is currently testing the intermediate support of its medium term bearish channel at 1,649 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1,620.
Technical indicators provide buy-signals and as the support is not broken the assumption of a rebound is most likely. 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 1,649 with the 1st objective at 1,660 and then at 1,665. A break through 1,646 will alter this scenario.
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