During the previous trading session, the XAU/USD exchange rate plummeted to the 1,340.00 level. During today’s morning, the rate dropped to the support level formed by the 100– and 200-hour SMAs, as well the monthly R2 at 1,333.67
If the given support holds, it is expected, that a reversal north could occur in the nearest future. However, note, that the rate is pressured by the 55-hour SMA, currently located at 1,342.24.
If the given support does not hold, it is likely, that the price for gold could continue to decline. A possible downside target is the psychological level at the 1,325.00 mark.
