The precious metal continues the downtrend that started in mid-November, in recent sessions it has shown some signs of recovery but it has not been able to reach the resistance at 23.17. The technical conditions are there to expect a price rally in the short term, but other fundamental factors affect the price behavior.
The Bollinger bands are shrinking and the pair could enter a consolidation phase, volatility should be lower in the short term, the price is at a relatively fair level as it trades in between the bands.
The relative strength index is at 45% which should allow the price to climb throughout the week. Our parabolic SAR indicator suggests that the price will continue to rise in the short term, the price is about to trade higher than the short term moving average, which is also a sign of an uptrend.
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