Contrary to expectations, the upper channel boundary and the 200-hour SMA near 1,330.00 did not provide enough resistance to pressure the rate south on Tuesday.
The pair remained sticky to this cluster, thus providing and early indication of the likely breakout north, even despite signals technical signals pointing to the prevailing bearish sentiment. By Wednesday morning, the yellow metal had reached the monthly PP, the weekly R1 and the 23.60% Fibo retracement circa 1,338.00.
The base scenario favours the pair edging lower during the following trading hours just to make a rebound from the breached channel. Subsequently, the 200-hour might successfully support the pair and thus allow for a continuous surge, setting the 1,350.00 mark as today’s high.
