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Gold Analysis: Squeezed In Narrow Range

Despite surpassing the 200-hour SMA early on Monday, the yellow metal returned below this line several hours later to test the 55– and 100-hour SMAs located circa 1,318.00. The pair was subsequently moving along the former, thus trading in a narrow range between this line and the 200-hour SMA by Tuesday morning.

Given that technical indicators are strongly bearish, this sentiment is expected to prevail in the market and thus push the rate for a test of the 38.20% Fibo retracement at 1,316.70.

Meanwhile, it is still possible that the pair still tries to test the upper boundary of the prevailing three-week channel down. In case the 200-hour is breached, gains should be capped near the weekly PP at 1,320.00.

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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