It is apparent that the strong downside momentum which prevailed last week is starting to allay. Moreover, the pair is diminishing its trading range between a channel line and a short-term trend-line. The 55-hour SMA continues to guide the pair.
Despite pointing to a possible upside breakout on Monday, Gold lacked the necessary bullish momentum to breach this resistance and thus re-tested its 2018 low of 1.237.00.
It is likely that the rate continues to trade in the aforementioned triangle-like formation until the 55– and 100-hour SMAs are breached. A subsequent surge is unlikely to surpass the strong resistance of the 200-hour SMA and the monthly PP at 1,270.00.
