Gold dipped sharply on Friday, but bounced later on the session to close the trading session above 1440.00 support level. Overall, the bearish bias is still favored, but we prefer to see a daily closing below 1440.00 to confirm further downside this week, as a holding below 1440.00 will confirm the completion of a minor double top pattern, and hints the resumption of the overall bearish wave. 

** Short term (Less than three months)

** Chart is based on GMT+2 timing

Notes: 

*if price reaches within 20% from target before triggering entry, signal is canceled and not valid anymore.

The pair breached key resistance level of the descending channel last week as shown on graph, which might extend the upside move. Linear Regression Indicators are positive supporting the suggested positivity. Momentum indicators are showing overbought signals; therefore the pair should break 0.9425 levels this week to limit the effect of the signals.

The trading range for this week is among key support at 0.9385 and key resistance at 0.9865.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

The ascending channel organized the pair’s trading over medium and long terms as shown on graph; we also see the pair stable above 99.85 levels that might extend the bullish move this week. The pair might test around key resistance level of the ascending channel above 103.00, and trading above 100.35 supports extending the upside move.

The trading range for this week is among key support at 97.00 and key resistance at 103.90.

The general trend over short term basis is to the upside as far as areas of 97.00 remain intact targeting 105.60.

The pair broke key support level of the ascending channel that is considered a correction for the descending channel starting at 1.6341 levels shown on graph. Linear Regression Indicators are negative indicating that the upside correction is over and a downside move might occur during this week. Due to oversold signals on Stochastic, volatility and upside corrections are likely. Trading below 1.5590 is negative this week, but the pair should stabilize below 1.5425 for this possibility to remain valid.

The trading range for this week is among key support at 1.4990 and key resistance at 1.5530.

The general trend over short term basis is to the downside as far as areas of 1.5610 remains intact targeting 1.4920.