Yesterday, the XAU/USD exchange rate consolidated in the 2,000.00 area. During Wednesday morning, the rate was testing the support provided by the 55– and 200-hour SMAs near 1,980.00.
If the given moving averages hold, it is likely that some upside potential could prevail in the market. Note that the nearest resistance level—the monthly R1, is located at 2,056.09.
However, if the exchange rate fails to exceed the psychological level at 2,020.00, it is likely that the price for yellow metal could continue to trade sideways in the short run.
