Gold began Tuesday’s trading session in a calm manner, thus fluctuating between the 100– and 200-hour SMAs for several hours. However, the bearish sentiment eventually took over, and the pair dashed through the 100– and 55-hour moving averages, the weekly and monthly PPs, the 23.60% Fibo retracement, as well as breached the dominant two-month channel up. As a result, the yellow metal closed the session with a 1.19% decline.
The rate bounced off the weekly S1 on Wednesday morning and was moving towards a massive resistance cluster formed by the previously-breached levels. It is likely that this area is reached today for the pair to make a retracement from the bottom channel line; however, its subsequent fall is unlikely to change the overall price level within the following 24 hours.
