XAU/USD tries to bypass 1,323.00 again
XAU/USD tries to bypass 1,323.00 again
Contrary to expectations, the exchange rate failed to sneak below the combined support formed by the lower trend-line of a junior ascending channel and the 200-hour SMA. In other words, bulls made one more, though unsuccessful, attempt to push the bullion through the upper boundary of a four-month long dominant descending channel. In larger perspective, the pair is still expected to make a fully-fledged rebound from this boundary even though the current horizontal movement might last for another two weeks because of support provided by the 61.8% Fibonacci retracement level at 1,311.48. On hourly chart a combination of the weekly PP, the 55- and 100-hour SMAs most probably will prevent the pair from falling below the 1,316.00 mark during this trading session. However, this scenario might be altered due to fundamentals, such as the US PPI data release.
Contrary to expectations, the exchange rate failed to sneak below the combined support formed by the lower trend-line of a junior ascending channel and the 200-hour SMA. In other words, bulls made one more, though unsuccessful, attempt to push the bullion through the upper boundary of a four-month long dominant descending channel. In larger perspective, the pair is still expected to make a fully-fledged rebound from this boundary even though the current horizontal movement might last for another two weeks because of support provided by the 61.8% Fibonacci retracement level at 1,311.48. On hourly chart a combination of the weekly PP, the 55- and 100-hour SMAs most probably will prevent the pair from falling below the 1,316.00 mark during this trading session. However, this scenario might be altered due to fundamentals, such as the US PPI data release.
Contrary to prognoses, the upper trend-line of a four-month long descending channel could not constrain the yellow metal from breaking above the 1,230.00 level. It appears that the surge was mainly based on fundamentals, such as signs of the upcoming monetary policy tightening in Europe and unclear picture on global demand prospects from Chinese trade data. For now, the exchange rate has stuck between the weekly and monthly R1.
An aggregate of technical indicators points out on continuation of the surge. In case these barriers are broken, the pair will face no obstacles on its way up until the weekly R2 at 1,339.62. In case of rebound, a combination of three moving averages together with the bottom edge of a four-week long ascending channel is expected to provide support.