On Wednesday, the XAU/USD exchange rate re-tested the lower boundary of the short-term ascending channel at 1,488.30. During today’s morning, the rate was testing the resistance formed by the 55-, 100– and 200-hour SMAs circa 1,500.00.
If the given moving averages hold, it is likely that a reversal south could occur in the nearest future, and gold could re-test the lower channel line. If the given trend holds, it is likely the rate could consolidate in the short term.
If the given moving averages do not hold, yellow metal could appreciate against the Greenback in the nearest future. A possible upside target is the psychological level at 1,510.00.
