Yesterday, the XAU/USD exchange rate reversed north from the lower boundary of the short-term descending channel at 1,321.57. During Wednesday’s morning, the rate was testing the upper channel line at 1,337.87.
From a theoretical perspective, it is likely, that a reversal south could occur in the nearest future. However, note, that gold has to surpass the support cluster formed by the 55– and 100–hour SMAs, as well the monthly R2 in the 1,328.49/1,333.67 range.
However, if the given channel does not hold, the price for gold could continue to increase. In this case, the exchange rate could target the psychological level the at 1,345.00 mark.