Gold remained steady against the US Dollar for the second consecutive session on Wednesday. The pair failed to accelerate and surpass the 200-hour SMA, but it likewise lacked the necessary downside momentum to breach the nearby-located 55– and 100-hour SMAs. This has left the pair in a narrow range between all three moving averages this morning. A breakout should determine the rate’s subsequent movement during the day.
Given that the southern barrier has held strong for several sessions, a breakout of the 200-hour SMA is regarded as a more likely scenario. In this case, the upside target should be the seven-week descending channel at 1,303.00.
Conversely, a fall below 1,290.00 should send the pair back to the senior channel or even lower at 1,280.00.
Given that the southern barrier has held strong for several sessions, a breakout of the 200-hour SMA is regarded as a more likely scenario. In this case, the upside target should be the seven-week descending channel at 1,303.00.
Conversely, a fall below 1,290.00 should send the pair back to the senior channel or even lower at 1,280.00.
Comment:
After reaching the upper boundary of a two-month channel down and its weekly high at 1,308.00 mid-Friday, the yellow metal began depreciating against the US Dollar as a result of which it was trading at the 100-hour SMA early this morning. Technical indicators are generally neutral for this session.
Given that there is a bank holiday in the US, big leaps either direction are unlikely. In terms of the downside, it is expected that the pair does not fall below the 200-hour SMA near 1,294.00, as this level is likewise reinforced by the 55-period SMA on the four-hour chart.
Meanwhile, bullish gains should be capped near the upper channel line at 1,306.00. This scenario is likewise supported by the six-day channel whose upper boundary is located at 1,312.00.
After reaching the upper boundary of a two-month channel down and its weekly high at 1,308.00 mid-Friday, the yellow metal began depreciating against the US Dollar as a result of which it was trading at the 100-hour SMA early this morning. Technical indicators are generally neutral for this session.
Given that there is a bank holiday in the US, big leaps either direction are unlikely. In terms of the downside, it is expected that the pair does not fall below the 200-hour SMA near 1,294.00, as this level is likewise reinforced by the 55-period SMA on the four-hour chart.
Meanwhile, bullish gains should be capped near the upper channel line at 1,306.00. This scenario is likewise supported by the six-day channel whose upper boundary is located at 1,312.00.
Comment:
The yellow metal was trading sideways against the US Dollar on Monday stranded between the 55– and 100-hour SMAs. In addition, the pair was likewise moving along the bottom boundary of a junior two-week channel up.
The rate lingering near this line suggests that a downside breakout is likely to occur today. This would send the pair lower down to the 200-hour SMA at 1.294.00. This level might likewise be surpassed in case of sluggish US CB Consumer Confidence data at 1400GMT. The ultimate daily low should be 1,290.00.
Conversely, Gold moving above the 55-hour SMA should also result in a bullish breakout of the seven-week channel at 1,304.00. A subsequent surge is likely to follow, thus setting the 1.312.00 level as the next possible target.
The yellow metal was trading sideways against the US Dollar on Monday stranded between the 55– and 100-hour SMAs. In addition, the pair was likewise moving along the bottom boundary of a junior two-week channel up.
The rate lingering near this line suggests that a downside breakout is likely to occur today. This would send the pair lower down to the 200-hour SMA at 1.294.00. This level might likewise be surpassed in case of sluggish US CB Consumer Confidence data at 1400GMT. The ultimate daily low should be 1,290.00.
Conversely, Gold moving above the 55-hour SMA should also result in a bullish breakout of the seven-week channel at 1,304.00. A subsequent surge is likely to follow, thus setting the 1.312.00 level as the next possible target.
Comment:
The XAU/USD exchange rate has remained stable for the second consecutive day. Tuesday’s trading session showed larger volatility if compared with the preceding day, but the price nevertheless remained near the 1,300.00 area.
Gold has once again approached the upper boundary of a seven-week channel and it seems that it might be ready to make a breakout north. However, technical indicators suggest that bears could take over the market today. This could likewise be confirmed by the fact that Gold breached the support of the 55– and 100-hour SMAs early today.
In case the 200-hour SMA at 1,295.00 is breached, a fall should continue until the senior channel and the 61.80% Fibo retracement at 1,286.00. Conversely, gains are likely to be capped at 1,312.00.
The XAU/USD exchange rate has remained stable for the second consecutive day. Tuesday’s trading session showed larger volatility if compared with the preceding day, but the price nevertheless remained near the 1,300.00 area.
Gold has once again approached the upper boundary of a seven-week channel and it seems that it might be ready to make a breakout north. However, technical indicators suggest that bears could take over the market today. This could likewise be confirmed by the fact that Gold breached the support of the 55– and 100-hour SMAs early today.
In case the 200-hour SMA at 1,295.00 is breached, a fall should continue until the senior channel and the 61.80% Fibo retracement at 1,286.00. Conversely, gains are likely to be capped at 1,312.00.
Comment:
The yellow metal remained steady against the US Dollar during the previous session, as it was fluctuating around the 55– and 100-hour SMAs on the given day. A significant fall was stopped by all three moving averages, while resistance was set by the upper boundary of a seven-week descending channel.
This medium-term pattern was breached early today, thus pointing to a possible surge within the remaining part of this week. There is enough upside potential until the 1,317.00 territory where the 38.20% Fibo and the 200-period (4H) SMA are located.
However, it should also be noted that the 200-day SMA is located at 1,310.00. Thus, this session could likewise mark either no changes to its price level or a slight decline down to 1,295.00.
The yellow metal remained steady against the US Dollar during the previous session, as it was fluctuating around the 55– and 100-hour SMAs on the given day. A significant fall was stopped by all three moving averages, while resistance was set by the upper boundary of a seven-week descending channel.
This medium-term pattern was breached early today, thus pointing to a possible surge within the remaining part of this week. There is enough upside potential until the 1,317.00 territory where the 38.20% Fibo and the 200-period (4H) SMA are located.
However, it should also be noted that the 200-day SMA is located at 1,310.00. Thus, this session could likewise mark either no changes to its price level or a slight decline down to 1,295.00.
As previously expected, the 200-hour SMA and the upper boundary of the short-term wedge surrendered mid-Thursday, driven by strong two-hour surge until the 1,306.00 mark. Further advance did not follow, as the pair was restricted by the 200-day and 100-period (4H) SMAs.
Meanwhile, the Asian session started with slight weakening, as bulls lacked the necessary momentum to dash through the aforementioned moving averages. Thus, it is likely that this bullish sentiment allays in this session, thus resulting in a test of the 100– and 200-hour SMAs near 1,294.00. This area is expected to hold firm.
In terms of the upside potential, Gold should reach the 1,310.00 area where the upper boundary of a seven-week channel is located.