On Monday, the XAU/USD exchange rate declined to the lower boundary of the short-term ascending channel at 1,282.75. During today’s morning, the rate reversed north.
From a theoretical point of view, the price for gold should target the upper channel line at the 1,288.85 mark. In this case the rate has to surpass the resistance level—the monthly PP at 1,287.27.
However, note, that the exchange rate is pressured by the 55—hour SMA, currently located at 1,284.63. Thus, if the given channel does not hold, a breakout south could occur soon.
