After testing the bottom boundary of a two-month ascending channel late on Friday, Gold accelerated against the US Dollar, thus dashing through several important resistance areas, including the weekly PP and the 55– and 100-hour SMAs. On Tuesday morning, the rate was testing the upper boundary of a short term channel and the 200-hour SMA circa 1,345.10.
Technical indicators demonstrate that some upside potential still exists in the near term. In addition, the current positioning of the pair suggests that the junior channel should surrender under the bullish pressure, thus allowing the rate to breach the 200-hour SMA and the weekly R1 and approach its six-month high of 1,365.00. However, given the strength of the nearest resistance, the pair might consolidate for some time.