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XAU/USD Analysis: Likely To Consolidate

The yellow metal has remained stable against the US Dollar during the following two weeks. Along the way, the rate did manage to reach a new 2017/2018 high at 1,360.00. The rate has since edged slightly lower and breached the 55-hour SMA. 

Technical indicators demonstrate that some slight downside potential still exists in the market. But given that the pair is facing a strong support of the 100-hour SMA and the weekly and monthly PPs, losses should not exceed 1,338.10. From the upside, Gold is restricted by the 55-hour SMA circa 1,355.00. 

Banks in the US are closed today; thus, the market is unlikely to introduce significant changes to the pair’s positioning. The rate might even consolidate and remain between the 55– and 100-hour SMAs. If bulls are to prevail, gains could be capped at 1,360.00.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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