During Monday, the XAU/USD exchange rate tried to breach the medium-term ascending channel north. During today’s morning, the rate continued to test the given channel.
From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. However, it is unlikely that the price for gold could drop lower than the 1,503.92/1,513.74 area due to the support cluster formed by the 55-, 100- and 200-hour SMAs.
If the given channel doe not hold, yellow metal could extend gains against the US Dollar in the short term. In this case the exchange rate could target the psychological level at 1,530.00.
