RLinda ! GOLD-> Price in consolidation. Rising or falling?

GOLD prices have been rising since the opening session on Monday, after falling sharply at the end of last week and pausing amid a strong strengthening of the dollar index.

*The dollar index has weakened by 0.46% since the opening session.
But, ahead of the upcoming excessive rate hike in the U.S.

Gold 17.10.2022 has been strengthening since the morning from weakness in the dollar index after the pound recovered amid expectations that more tax cuts will be reversed

From a technical point of view, the situation develops as follows:
1) Price returns to the 1654-1665 range after teasing the bottom
2) The price is squeezed between support 1654 and channel resistance
3) If we take into account the global trend, we should expect fall from the channel resistance
4) The important level for growth is resistance 1665, in case of breakdown and fixation above it, there is a chance for growth.
5) In case of a fall, the price is expected to remain in the channel for a long period, up to testing support 1622.

Regards R. Linda!

Comment:

The price in the morning pullback phase enters an important zone for it. I assume that there may be a consolidation formation up to the testing of the channel resistance

Comment:

In this case, we expect a breakthrough of resistance.
It is possible to open a trade in two cases:
At the initial breakdown of resistance (when the price has just begun to break through the trend line)
Provided that the breakout occurred and a pullback to the support zone is formed. After the pullback, when the price began to turn to grow - it is allowed to open long positions

Comment:

In this case, we count on a short scenario and consider it relevant:
Provided the price tests the channel resistance and does not break it up, consolidation will form under the level and the price will start to break the important support 1654
It is acceptable to enter a short position:
1) Provided the price has tested the resistance and is consolidating under the trendline
2) Price has broken through the level of 1654 and is consolidating under the level