XAU/USD spent Monday’s trading session within the bounds of the 100– and 200-hour SMAs and the weekly PP in the 1,328.60/1,334.71 area.
The pair, however, managed to accelerate early today and thus breach a one-week descending channel. Being supported by the 55-, 100– and 200-hour SMAs circa 1,332.40 is likely to pressure the rate upwards in this session. Gains, however, are expected to be limited, as the nearest resistance is set by the weekly R1 and a four-month high circa 1,343.76.
By and large, Gold’s appreciation during the past trading sessions was driven by the strong support of the 200-hour SMA. It is likely that this moving average continues to provide unbreakable support this week, thus sending the pair above its four-month high.
The pair, however, managed to accelerate early today and thus breach a one-week descending channel. Being supported by the 55-, 100– and 200-hour SMAs circa 1,332.40 is likely to pressure the rate upwards in this session. Gains, however, are expected to be limited, as the nearest resistance is set by the weekly R1 and a four-month high circa 1,343.76.
By and large, Gold’s appreciation during the past trading sessions was driven by the strong support of the 200-hour SMA. It is likely that this moving average continues to provide unbreakable support this week, thus sending the pair above its four-month high.
Bulls dominated the market on Tuesday, thus allowing the yellow metal to appreciate by 0.57%. The pair showed low volatility during this time, except for some hourly jumps in both directions. From technical point of view, this surge resulted from the strong support of the 55-, 100– and 200-hour SMAs and the weekly PP circa 1,333.80, as bulls saw an opportunity to collect some gains.
By early Wednesday, Gold had reached the weekly R1 and the four-month high at 1,344.00. In addition, the upper boundary of the prevailing short-term pattern is also located nearby.
Even though technical indicators still show some upside potential, it is likely that the market introduces a slight correction southwards down to the aforementioned support. This area is expected to hold firmly.