Fellas, the lack of economic events is causing sideways movements in the market. Gold prices especially eased as investors seem to book some profit from the metal’s strong run this week. Yet I wasn’t expecting a bearish breakout on the bullish channel.

As we can see on the hourly timeframe, gold was facing strong support around 1,305, the lower edge of a bullish channel, and that’s where we enter a long position. To our hard luck, the metal broke out on the lower side, instead of continuing the bullish trend.

Anyway, gold can gain support above 50 periods EMA at 1,300 level. In case the bears continue to dominate, the next stop will be 1,296 for gold.

Stay tuned to FX Leaders!