During Wednesday, the XAU/USD exchange rate traded downwards. During today’s morning, the rate tested the support formed by the monthly R1 and the 200-hour SMA at 1,544.31.
If the given support holds, it is likely that a reversal north could occur in the nearest future. Note that the rate would have to surpass the resistance formed by the 55– and 100-hour SMAs, as well the monthly R2 in the 1,570.00 area.
If the given resistance and support levels hold, it is likely that yellow metal could trade sideways against the US Dollar in the short term. However, if the given support does not hold, it is likely that the price for gold could decline below 1,530.00.
