High volatility was apparent for the XAU/USD pair on Wednesday. It was driven by downside momentum during the first part of the day, while bullish force dominated the pair later in the session. Subsequently, the rate being stranded between all three SMAs and the upper channel line resulted in a minor period of consolidation.
Two channels demonstrate that the pair’s subsequent movement should be south down to the 1,305.00 mark. In order to confirm this bearish scenario, traders should see if the yellow metal is able to breach the 1,312.00 area during the following hours.
Conversely, a breach from the medium-term channel and the 38.20% Fibo retracement at 1,316.50 could mark the beginning of a few-day appreciation. Today’s upside target is the monthly PP at 1,330.00.
