After breaching the 200-hour SMA late on Tuesday, the yellow metal has since been moving lower. Wednesday’s trading session, however, did not introduce significant changes, as the pair closed the day with a limited 0.35% decline. The FOMC meeting minutes introduced some upward volatility which was still more favourable for the US Dollar.
As apparent on the chart, the narrow junior channel has managed to confine the rate for the third consecutive session. A breakout is expected to occur today. Gold might still slide lower down to the weekly S1 or the 38.20% Fibo at 1,320.70 and 1,316.70, respectively.
However, the overall direction should nevertheless be north with gains being capped near the 55– and 200-hour SMAs, the monthly PP and the 23.60% Fibo in the 1,332.00/1,338.00 territory.
