Gold Analysis: Pierces Resistance Line

Technical analysis of Forex market

There are a number of important updates to note in regards to the price of Gold. First of all, the price has pierced the resistance line of the recent June high levels. Secondly, the price has revealed that it is surging in a channel up pattern. In addition, the simple moving averages are left below the bullion.

If the metal continues its surge, it is highly likely that the bullion would reach the resistance of the 1,800.00 marks. However, take into account that the price is bound to encounter resistance in the 1,790.00 and 1,795.00 levels. The price bounced off these levels throughout the previous week.

On the other hand, a potential decline would look for support in the lower trend line of the channel-up pattern. Moreover, if the SMAs catch up from below, they are highly likely going to provide technical support.