Price is moving in 2 descending channels which shows high selling pressure, but taking into account the fact that price is in the lower bands of both channels, there is a good probability of an upward bounce this week.
The target of this likely bounce shall be 1.3280. It should be noted that initiating long positions are risky and the positions should be set with light volume.
After a slow paced decline took place in comparison to the previous rally, it seems that the Central Monthly Pivot area is encouraging the bulls and provides them with the necessary energy resources to break both descending channels.
We think that the likely rise during this week will carry the Cable up to 1.5771 area. In that level, profit taking is advised.
Price is at the intersection of a large ascending channel and a neutral channel of smaller size. At this point, we witnessed an increase in demand and it seems reasonable that as long as we are above the Central Monthly Pivot, selling the Gold short is a risky business.
We think that the current price structure favors a bounce to the $1417 to $1425 region. If, however, the $1367 level is broken decisively to the downside, bears will have the upper hand again.