On Tuesday, the XAU/USD exchange rate breached the long-term ascending channel north. During today’s morning, the rate was testing the resistance level—the monthly R2 at 1,487.41.
If the given resistance level does not hold, it is likely, that gold could continue to appreciate against the US Dollar in the nearest future. A possible upside target could be the psychological level at 1,500.00.
On the other hand, the exchange rate could trade sideways around the given monthly R2. Also, it is unlikely, that the price for golds could drop lower than 1,450.37 due to the support of the monthly R1 and the 100-hour SMA.
