GOLD → Trading within the descending channel

19 gen

GOLD confirms the lower boundary of the channel, forms a false breakdown of 2010 and reverses to form a counter-trend correction.



Gold manages to grow on the background of the growing dollar index. Today there is no news that can somehow change the direction. Technically, gold, within the descending range, is heading towards the resistance area of 2042-2048.
On the background of the correction, the price is breaking through MA-50 and the strong level of 2025. Ahead is MA-200 and no less important resistance zone 2035 from which a correction may follow with the aim of retesting 2025.

• Thus, within the range we should focus our attention on the area: 2035, MA-200. Breakout of this zone and price consolidation above it will form a potential for further growth to the previously mentioned target: liquidity and resistance zone 2042-2048.
  
• But if the bears sell the price, forcing a breakout of 2025 and consolidation below the level, then in this case, against the background of a rising dollar, gold may head towards the support area of 2004.
  

Support levels: 2025, 2029
Resistance levels: MA-200, 2035

As part of the intra-range trading strategy, the price may reach the trend resistance and test 2048. But, still we have a strong dollar and strong sellers in the market. If the price goes back to 2025, we should be ready for further selling

GC1! DXY MGC1!

Regards R. Linda!