On Tuesday, the yellow metal finally managed to break out from its diminishing trading range between the monthly PP and the 55– and 100-period (4H) SMAs at 1.301.00 and 1.297.00, respectively. The pair breached the latter mid-session, thus returning to the bottom boundary of a one-month channel at 1,295.00.
The pair breaching several important support levels suggests that bears could continue dominating the pair in this session, as well. This is likewise shown by the positioning of technical indicators.
Today’s low is likely to be the senior channel at 1.290.00. The 61.80% Fibonacci line is likewise located nearby. Conversely, the 55– and 100-hour SMAs should restrict a move above 1,300.00.
