XAU/USD tries to break below monthly S2
Previous trading session the exchange rate mostly spent in a horizontal movement between the monthly S2 from the bottom and the upper boundary of a medium-term descending channel from the top. As on daily chart the pair continues to fluctuate in a junior channel down, a little recovery of the yellow metal is expected to happen. On the other hand, on hourly chart the upward movement is likely to be neutralized by the falling 55- and 100-hour SMAs as well as the weekly PP and the monthly S1 located around them. Hence, in nearest perspective the rate most probably will continue moving in southern direction. Such scenario is supported by positive expectations of the upcoming adoption of the tax reform as well as interest rate hike.
Previous trading session the exchange rate mostly spent in a horizontal movement between the monthly S2 from the bottom and the upper boundary of a medium-term descending channel from the top. As on daily chart the pair continues to fluctuate in a junior channel down, a little recovery of the yellow metal is expected to happen. On the other hand, on hourly chart the upward movement is likely to be neutralized by the falling 55- and 100-hour SMAs as well as the weekly PP and the monthly S1 located around them. Hence, in nearest perspective the rate most probably will continue moving in southern direction. Such scenario is supported by positive expectations of the upcoming adoption of the tax reform as well as interest rate hike.
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XAU/USD still trades near 55-hour SMA
Due to anticipation of the upcoming decision on the interest rate hike, the exchange rate continued to move horizontally between the 55-hour SMA and the monthly S2 from the top as well as the 50% Fibonacci retracement level and the weekly S1 from the bottom. Until release of data on the American inflation the rate is expected to continue its steady movement around the 1,244.00 mark. Subsequently, the pair might temporarily surge to the 100-hour SMA located near the 1,250.00 level. However, the fact that southern side is practically barrier-free and the rate is fluctuating in a two-week long descending channel suggests that the further advance to the top is unlikely.
Due to anticipation of the upcoming decision on the interest rate hike, the exchange rate continued to move horizontally between the 55-hour SMA and the monthly S2 from the top as well as the 50% Fibonacci retracement level and the weekly S1 from the bottom. Until release of data on the American inflation the rate is expected to continue its steady movement around the 1,244.00 mark. Subsequently, the pair might temporarily surge to the 100-hour SMA located near the 1,250.00 level. However, the fact that southern side is practically barrier-free and the rate is fluctuating in a two-week long descending channel suggests that the further advance to the top is unlikely.
In line with expectations, the falling 55-hour SMA did allow the bullion to recover against buck. As a result, the rate was forced to find support at the 50% Fibonacci retracement level located at 1,240.30. In early hours of this trading session bulls made another attempt to inch the price of yellow metal higher. But this endeavor is expected to fail as well due to combined resistance barrier formed by the above 55-hour SMA and the monthly S2 at 1,246.74. Accordingly, the bearish momentum is likely to continue at least until the Fed meeting that will happen tomorrow. An aggregate of technical indicators supports this scenario via sending sell signal for the rest of the day.