Gold has been trading sideways against the US Dollar for a week now. Bullish gains have been limited by the 50.00% Fibonacci retracement and the monthly PP at 1.301.00, while support is set by the lower boundary of a six-day channel up and the 100-period (4H) SMA.
Technical indicators on the 1H and 4H charts flash mixed signals, while the those on the 1D time-frame point to further advance. In case the 100-period SMA is breached, it is expected that bears push the rate considerably lower, possibly down to the senior channel and the 61.80% Fibo at 1.285.00.
Meanwhile, gains are likely to be limited today, as the 1,310.00 area is restricted by the 200-day SMA.
