On Tuesday, the XAU/USD exchange rate reversed south from the upper boundary of the long-term ascending channel at the 1,433.82 mark. During today’s morning, the rate was testing the support level formed by the 100-hour SMA at 1,405.76.
If the given moving average holds, it is likely, that gold could make the U-turn and continue to appreciate against the US Dollar. In this case, the rate could re-test the given channel.
However, note, that the price for gold is pressured by the 55-hour SMA at 1,417.37. Thus, the rate could trade sideways between the given moving averages in the nearest future.
