In full accordance with expectations, in first half of the previous trading session the buck continued to trade against the gold in a limbo between the 1,270.50 and 1,276.70 marks that were located just above the lower trend-line of a large dominant ascending channel.
However, the subsequent admission of guilt by General Flynn led to 0.76% rise in demand for safe haven metal just in one hour. But as it was an impulse reaction, a combination of the 100- and 200-hour SMAs managed to neutralize the surge.
Since there are no impactful news planned for today, the rate is likely to spend this trading day between the 55-hour SMA at 1,279.00 and the above bottom boundary located near 1,270.00.
In larger perspective, bulls are expected to take the lead once again, although the pair might prolong consolidation for the next couple of days.
