On Monday, the XAU/USD exchange rate tried to breach the short-term descending channel north.
From a theoretical point of view, it is likely, that the rate could reverse south. However, note, that gold has to surpass the support level formed by a combination of the 55-, 100– and 200-hour SMAs located circa 1,280.00.
On the other hand, the price for gold could trade sideways between the given support level and the upper channel line located circa 1,284.00.
If the given channel does not hold, the price for gold could reach the resistance level—the monthly PP at 1,287.27.
