In accordance with expectations, the yellow metal managed to restore some lost positions against the buck yesterday. However, this surge lasted only until the pair hit the 61.8% Fibonacci retracement level, which matched with beginning of Governor Powell’s speech. In result of the downfall, the pair approached the weekly S1, which is located at the 1,266.63 level. Although the first attempt to break to the bottom was not successful, eventually the pair is expected to bypass this barrier. Not only because the northern path is now secured by a combination of the 55-hour and 100-day SMAs, but also because the rate is moving in a medium-term downtrend, which should lead it to the bottom trend-line of a dominant, long-term ascending channel.
