Technical Analysis

XAU/USD Analysis: Breaks One-Year Long Channel Up

Typography

During previous trading session the buck appreciated against the gold by 0.88%. The downfall was mainly driven by optimistic expectations of the upcoming talks between the House and Senate. An interesting detail is that yesterday’s mid-day plunge was almost identical to drop that happened seven days ago. This, in turn, means that movement of the pair is now guided by a medium-term descending channel, which came in place of the long-term dominant ascending channel. This transformation is also supported by traders’ sentiment, which becomes less and less bullish. As for today, the upper target is supposedly located at the 1,274.00 mark. However, it is unlikely that bulls will manage to gain a foothold there due resistance zone located near 1,271.00 as well as the falling 55- and 100-hour SMAs.

Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
Dukascopy Swiss FX Group
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.
More from the author