During the previous trading session, the XAU/USD exchange rate skyrocketed to the upper boundary of the short-term ascending channel at 1,431.00. During today’s morning, the rate reversed south.
From a theoretical point of view, it is expected, that the price for gold could continue to decline. A possible downside target is the support cluster formed by the 55-, 100– and 200-hour SMAs, currently located in the 1,408.16/1,413.12 range.
On the other hand, the exchange rate could reverse north to re-test the upper channel line. It is unlikely, that the rate could exceed the 1,435.00 mark due to the upper boundary of the long-term ascending channel.
