Gold (XAU/USD) formed a daily pin bar on the support level at 1648 yesterday. The pair has staged reversals from this level several times over the past 12-14 months as well as farther back in time. However, the entire daily range was only about 150 pips, which is nothing for this pair, as some daily bars similar in form at this level have been close to 400 pips. The zone is the key really, if the pair can stay above 1640, there is a strong possibility that this could be the turning point investors have been expecting and the beginning of a new bullish move with the 2000's being the eventual target, but that is a long way off and there are hurdles along the way such as the top of the descending channel that resides at roughly 1670 along with the Monthly Pivot. 1650 is also in the way, and a key zone to overcome for the bulls. If however, the daily low at 1638 is breached, then this opens the door for further declines towards the December lows at 1635, and the January lows at 1625.80.
Happy Trading!