XAU/USD was trading in a narrow range on Wednesday and early on Thursday. The upper limit was set by the monthly PP, the 55-period (4H) SMA and the 50.00% Fibo retracement at 1,30.00, while the lower one—by the combination of the 55– and 100-hour and the 100-period (4H) moving averages near 1,295.00.
A breakout should occur soon. Technical indicators are in favour of the bearish scenario. This would send the pair past the bottom line of a one-month channel and down to the 1,290.00 mark.
Conversely, the yellow metal is expected to target the 1,310.00 area if its current resistance cluster is surpassed.
