- Gold is stuck in a sideways channel on the hourly chart.
- Channel breakdown would open doors for deeper pullback to recent lows.
Gold is trading near the hourly chart sideways channel resistance of $1,954.
The consolidation seen on the hourly chart is preceded by a violation of the trendline rising from Aug. 12 and Aug. 16 lows. As such, the sideways channel is more likely to breached to the downside. That may encourage sellers to press toward support at $1,963 (Aug 12 low).
On the other hand, if the channel’s resistance is breached, the bearish view put forward by the ascending trendline breakdown confirmed earlier this week would be invalidated. That may lead bulls to reattempt testing the psychological hurdle of $2,000. That said, a stronger evidence of bullish revival would be a close above the lower high of $2,015 created on Aug. 18.
Hourly chart
Trend: Bearish
Technical levels
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