Despite existence of a strong resistance barrier formed by the monthly PP and the upper trend-line of a four-month long dominant descending channel the yellow metal continued to rally against the buck and managed to reach the weekly R1 at 1,283.37. Apart from this indicator the exchange rate faces no obstacles on its way up until the 1,287.00 level, which represents location of the 100-day SMA. As more than half of all pending orders are set to buy, the bullion is likely to continue the surge. The upward movement is also supported by the junior ascending channel, which can be clearly seen on daily chart. However, this scenario could be altered if release of the CB Consumer Confidence appears to be worse than expected.
