Our prediction of a breach for the key support of the ascending channel was accomplished as seen above. Now the short-term downside direction is valid and additional drop is expected driving the pair to levels below 800 an ounce. On the other hand, momentum indicators are overbought, which could force the pair to a slight ascending correctional movement before continuing with the drop. The downside direction on the medium and short term will be clear if the correctional movement does not exceed 830.80 levels.
The trading range for today is among the key support at 760.00 and the key resistance at 858.20
The general trend is to the downside as far as 934.00 remains intact with targets at 649.20 and 615.60
|Sell gold below 814.05 with targets at 799.00, stop loss with four hour closing above 835.40|