FX.co ★ Analysis of Gold for August 26,.2022 - Breakout of the rising channel and strong downside momentum

Technical analysis:

Gold has been trading downside as I expected. There is the breakout of the rising channel in the background and potential for further drop.

Trading recommendation:

Due to the breakout of the rising channel in the background and the downside trend, I see further drop.

Watch for potential selling opportunities on the intraday rallies with the downside objective at the price of $1.730.

Stochastic is showing oversold condition but no evidence for the reversal, which is good sign for further downside movement.

Key short-term resistance is set at the price of $1.764