XAU/USD did not introduce any surprises during Tuesday’s trading session. The pair bounced off the upper boundary of a three-month channel and the monthly R1 near 1,355.00 prior to breaching the short-term channel and the 55-hour SMA.
Gold managed to recover some of the losses during the Asian session, but nevertheless remained supported by the 100-hour SMA.
Some downside potential still exists in the market. Thus, the yellow metal might still target the 23.60% Fibo retracement at 1,335.00. However, it is likely that the current bearish momentum does not prevail long in the market, thus allowing bulls to take control soon.
In terms of upside potential, the aforementioned channel line should be strong enough to prevent further advances.
