Gold is currently testing the intermediate resistance of its medium term bullish channel at 1,615 and seems to initiate a decline. However, a break through these levels will release good potential and reach the upper limit of this one to 1,644.

Technical indicators provide sell-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 increase these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,615 with the 1st objective at 1,625 and then at 1,630. A break through 1,612 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com