XAU/USD has been diminishing its trading range for the last three sessions. This has left the rate in a triangle-like formation between a channel line and a trend-line.
Gold breached the 55– and 100-hour SMAs and the aforementioned channel early on Wednesday. However, it is unlikely that a surge could follow today, as a strong resistance level is formed by the 200-hour and 55-period (4H) SMAs near 1,220.00. Likewise, technical indicators flash bearish signals for the pair today.
It seems that the 55– and 100-hour SMAs at 1,210.00 could surrender, thus sending the rate lower down to the monthly S1 at 1,202.00.
