During Monday, the XAU/USD exchange rate traded sideways at the 1,426.00 mark. During Tuesday’s morning, the rate was testing the lower boundary of the short-term ascending channel at 1,418.00.
From a theoretical point of view, it is expected, that a reversal south could occur within the following trading hours. However, note, that the rate has to surpass the resistance of the 55– and 100-hour SMAs, located at 1,425.04 and 1,427,91 respectively.
If the given channel does not hold, it is likely, that a breakout north could occur in the nearest future. A possible downside target is the psychological level at 1,400.00.
