The yellow metal has been depreciating against the US Dollar in a descending channel for the seventh consecutive trading session. The pair has already fallen 1.34% since the beginning of this week.
By Wednesday morning, Gold had reached the monthly S2 and the bottom boundary of a three-month channel down near 1,255.00. Shorter-term technical indicators are starting to recover, while those on the 4H time-frame are still lagging behind. However, it is still expected that this session brings some bullish momentum to the upside.
A strong resistance cluster is set by the 55– and 100-hour SMAs at 1,265.00. In case this level us surpassed, Gold is likely to target the 200-hour SMA at 1,275.00.
