On Wednesday, the XAU/USD exchange rate declined to the 1,635.00 level. During today’s morning, the rate was testing the given level.
Given that the currency pair is pressured by the 200-hour SMA near 1,645.00, it is likely that some downside potential could prevail in the market. Note that the nearest support—the monthly PP, is located at 1,607.96.
On the other hand, it is likely that gold could trade sideways against the US Dollar in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the monthly PP at 1,668.23.
