XAU/USD was not an exception for the strong appreciation of the US Dollar in the wake of solid employment data. As a result, the yellow metal fell below the 200-hour SMA into the bearish territory. Subsequently, the pair entered a consolidation period on Monday morning, thus fluctuating near the 1,257.80 mark. The given move has pushed the rate outside a minor channel down which was formed as a wave south in a senior ascending channel. Technical indicators signal to a potential near-term recovery that should push Gold back in the junior channel. Likewise, it is likely that it edges as high as the weekly PP at 1,262.80 and stops near the 200– and 55-hour SMAs. From the downside, the pair is supported by the weekly S1 at 1,251.28.
