Gold has been trading sideways against the US Dollar since Friday, as it has been stranded in a narrow range between the 55-, 100– and 200-hour SMAs and the 1,218.50 mark.
The pair tried to re-test the longer-term SMAs mid-Tuesday, but bulls lacked the necessary momentum to dash through this weekly resistance. Nevertheless, bears also failed to accelerate, thus showing that the bearish sentiment is not very strong, as well.
When one of these sides eventually takes the upper hand, the yellow metal should surge considerably in the breakout level. Upside target is the monthly PP and the 100-period (4H) SMA at 1,235.00, while a fall can be limited solely by the weekly S1 at 1,205.00. Medium-term signals remain bullish.
