The yellow mental shown high volatility against the US Dollar on Tuesday. This decline occurred after the commodity price hit a strong resistance level formed by the 100-hour simple moving average.
By the early hours of Wednesday trading session, the pair has moved closer to the lower boundary of a descending channel and could be set for a breakout within this session.
Everything being equal, the XAU/USD exchange rate is likely to continue its downward movement during the following hours. Meanwhile, technical indicators flash sell signals.
