Strong upside risks have dominated the given pair since late Thursday.
It reversed from the 1,322.15 area, thus providing another confirmation of the bottom boundary of a four-week channel, and began its movement towards the 1.345.00 mark. As apparent on the chart, Gold dashed through several significant resistance levels, including the 100– and 200-hour SMAs and the 23.60% Fibo at 1,335.00.
The base scenario favours the pair continuing to trade in line with the medium-term pattern and re-testing its March high of 1,355.00 where the senior channel and the monthly R1 are located.
Meanwhile, it is unlikely that the strong support at 1,335.00 is breached today, especially when the US Dollar is weakened by global trade tensions.
