The first part of Monday’s session was spent with no changes to the overall market price, as Gold was fluctuating in a narrow range between the 55– and 100-hour SMAs. The latter, reinforced by the bottom boundary of a two-week channel up, was breached late in the evening, thus pushing the rate closer to the 200-hour SMA, the 23.60% Fibo retracement and the monthly PP circa 1,335.00.
Technical oscillators have been pushed in the strongly oversold region, thus pointing to a possible recovery during this session. Thus, the base scenario favours a test of the aforementioned 1,335.00 level and a subsequent surge towards the 55– and 100-hour SMAs.
By and large, moving averages are expected to be strong barriers that should not surrender today
