Following a sharp up-move on Tuesday which was caused primarily by weaker US Dollar, the yellow metal surrendered some of its positions during the previous session.
As a result, the pair was pushed down to the monthly PP at 1,330.00. Its subsequent movement was guided entirely by the 55-hour SMA which had pushed the rate to the combined resistance of the 200-hour SMA and the 23.60% Fibo near 1,335.60 by Wednesday morning.
Technical indicators remain bullish for this session, thus suggesting a move towards the senior channel and the monthly R1 at 1,355.00—the pair’s highest level in March. This scenario should still be confirmed by a breakout of the long-term moving average.
Meanwhile, Gold’s direction during the following week is expected to be south in line with the senior channel.
