XAU/USD forms junior channel down
XAU/USD forms junior channel down
During the early hours of new trading session the yellow metal continued to lose value against the buck in a junior descending channel. Basically, the consolidation period might last until the exchange rate will hit the support line of a four-week long ascending channel. A deep plunge below that barrier seems unlikely due to additional support provided by the rising 200-hour SMA as well as the 50% Fibonacci retracement level located at 1,297.00. So, unless the buck gains a momentum from some fundamental event, such as tomorrow’s employment data release, the bullion is likely to test the 1,320.00 level one more time. An allocation of pending orders as well as some technical indicators supports this assumption.
During the early hours of new trading session the yellow metal continued to lose value against the buck in a junior descending channel. Basically, the consolidation period might last until the exchange rate will hit the support line of a four-week long ascending channel. A deep plunge below that barrier seems unlikely due to additional support provided by the rising 200-hour SMA as well as the 50% Fibonacci retracement level located at 1,297.00. So, unless the buck gains a momentum from some fundamental event, such as tomorrow’s employment data release, the bullion is likely to test the 1,320.00 level one more time. An allocation of pending orders as well as some technical indicators supports this assumption.
Despite positive developments on the American labour market the bullion continued to advance against buck. The rate has successfully reached a tiny resistance zone located between the 1,321 and 1,322 marks. As further road to the north is obstructed by a combination of the weekly R2 and the monthly R1 near the 1,328.4 level the pair is expected to retreat back to the weekly R1 that became additionally secured by the 55-hour SMA. An existence of a minor ascending channel also point out on a plunge in the first half of this trading session. Since the area below the bottom trend-line of the above pattern contains the 100-hour SMA and the 61.8% Fibonacci retracement level, the drop below the 1,311.48 mark seems unlikely. However, it would greatly depend on today’s release of the American macro data.