Gold is testing a key resistance area in 2016. A tight liquidity zone could keep the price down and in that case the metal could weaken to 2000 or to 1981.
On the daily chart, the price forms a correction. Since the price is in the sideways range 2048-1981 globally, we have a chance that it might continue decreasing towards the lower boundary of the range.
At the moment, a false breakout of the 2016 area is formed. If the level is not broken the price will return to the support of the channel and at the next retest the price can break the support. But if the gold breaks through the 2016 area, then we will see a recovery to 2032.
Strong resistance: 2016, 2020, 2032
Strong support: 2010, rising channel line, 2000
I expect a continuation of the correction towards 2000, as the daily chart at the moment shows no hints of a bullish trend.
On the daily chart, the price forms a correction. Since the price is in the sideways range 2048-1981 globally, we have a chance that it might continue decreasing towards the lower boundary of the range.
At the moment, a false breakout of the 2016 area is formed. If the level is not broken the price will return to the support of the channel and at the next retest the price can break the support. But if the gold breaks through the 2016 area, then we will see a recovery to 2032.
Strong resistance: 2016, 2020, 2032
Strong support: 2010, rising channel line, 2000
I expect a continuation of the correction towards 2000, as the daily chart at the moment shows no hints of a bullish trend.
