Gold tested a new 2-year low yesterday. Back from the weekend, gold has dropped to the early low near 1626 in the Asian session. However, the price has quickly rebounded. At the European session, it already reached the day-high at near 1649. Selling resumed in the late US session, where the day ended near the day-low at 1622.
The overall trend in the 1-hour chart is now bearish after the price cleared the 1650(1) support last Friday. Selling momentum so far isn't too strong; an S-T downtrend channel(2) has been formed. Before the price consolidates further, clearing the support at 1620, the downtrend channel(2) can be used as a reference while trading with the 1620-50(3) range.
While the downtrend channel(5) still affects gold's movement, the price has been moving lower tier by tier(4) on the daily chart. The range for each tier is approximately USD40 in the past 4 weeks. Expect the price to be bounded between 1610-50(4.1) temporary before the next move for now.
S-T Resistance:
1650
1645-46
1638-40
Market price: 1633
S-T Supports:
1630
1624
1620
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The overall trend in the 1-hour chart is now bearish after the price cleared the 1650(1) support last Friday. Selling momentum so far isn't too strong; an S-T downtrend channel(2) has been formed. Before the price consolidates further, clearing the support at 1620, the downtrend channel(2) can be used as a reference while trading with the 1620-50(3) range.
While the downtrend channel(5) still affects gold's movement, the price has been moving lower tier by tier(4) on the daily chart. The range for each tier is approximately USD40 in the past 4 weeks. Expect the price to be bounded between 1610-50(4.1) temporary before the next move for now.
S-T Resistance:
1650
1645-46
1638-40
Market price: 1633
S-T Supports:
1630
1624
1620
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Gold rebounded from the new 2-year low. The price has been consolidating during the Asian and European sessions after the market opened at 1628 yesterday. Once the news from BOE hit the market, the surge began. At the US session opening, buying came into the market and cleared the resistance at the trendline(1). The price jumped to the day-high at 1662, with the day ending at 1659, up by USD 31.
The S-T bearish trend has ended as the price trades again above the critical 1650 support. Before it clears the current resistnace at 1660, the price is now trapped in the tight range of 1650-60(1). If the market picks up the bullish momentum later in the European and US sessions, the upside target can again be set at the upper limit of the 1660-90 range.
The gain yesterday formed a clear reversal signal. The following key resistance is now sitting at 1665(4); once it's clear, the upside target can be set at the upper limit of the downtrend channel(5) or the 20-day MA (6).
S-T Resistances:
1676
1665
1660
Market price: 1653
S-T Supports:
1650
1640
1630-28
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