The 55– and 100-hour SMAs have guided the yellow metal since the massive fall on June 15. The pair’s movement has become more stable during the past few days which might point to a possible change in sentiment this week.
Technical indicators on the larger time-frames are starting to recover; however, the price has failed to follow. It seems that these two moving averages could continue guiding the pair in this session, as well, especially if some downward potential still exists in the market.
The nearest support level is the monthly S2 at 1.260.00, while the junior channel line is likewise located nearby. In case the above resistance is breached, a surge should follow up to the monthly S1 and the 200-hour SMA circa 1,280.00.
