- The first half of previous trading day the yellow metal spent in a confident upward movement, supported by the 55-hour near 1,267.26 as well as the release of a number of disappointing US macroeconomic data.
- Once an upside momentum was over, the buck started to restore lost positions and dragged the rate to the bottom, passing through the 20-, 55- and 100-hour SMAs .
- Given that SWFX traders remain slightly on the pair, it might slip a little bit further towards the bottom trend-line of an that is backed up by the weekly PP at 1,261.80 and the approaching 200-hour .
- On the other hand, certain technical indicators send a signal that the bullion is already oversold and, thus, might start the surge without reaching the pattern’s boundary.
In any case, the downside momentum was strong enough to drive the pair through the bottom trend-line of an ascending channel. Fortunately for the yellow metal, the barrier set up by the weekly PP at 1,261.94 and that became additionally secured by the approached 200-hour SMA managed to stop the downfall and even forced the pair to make a rebound.
As a result, today the bullion will try to get back into formation, break through the 55- and 100-hour SMAS and try to reach the 1,272.24 level. Various technical indicators support this scenario, pointing out the pair is oversold.