The yellow metal remained tangled around the 55-, 100– and 200-hour SMAs for the third consecutive session on Tuesday. As a result, the pair was not able to form a distinctive move either direction and thus remained trading in the 1,307.00/1,317.00 range.
Two new and opposing channels were drawn on the chart to track the pair’s short-term movement. Thus, traders should observe which pattern Gold follows during this trading session. In case the pair respects the more senior one and thus reverses to the upside at 1,308.00, a surge up to 1,330.00 is likely to follow.
On the other hand, a breakout of the 1,308.00 level should result in further decline down to the senior channel and the 50.0% Fibonacci retracement at 1,300.00.
