Downside risks were dominating over the XAU/USD exchange rate on Thursday. After failing to move above the 1,330.00 mark mid-session, the yellow metal started to gain bearish momentum until the monthly S1 at 1,309.92 was reached this morning. Given that the pair remained near the 38.20% Fibo retracement line today, it is likely that a bullish reversal towards the 23.60% line occurs. This area is also reinforced by the 55–, 100– and 200-hour SMAs and the monthly PP in the 1,330.00/1,338.10 range. Technical indicators are likewise supportive of this scenario, as they signal that a movement upwards should be due soon. On the other hand, a slight period of depreciation down to 1,300.00 should not be discarded.
