After reaching above the 1,915.00 level on Tuesday, the yellow metal’s price began a decline. During the first part of Wednesday’s trading, the price was fluctuating sideways below the resistance of the 100-hour simple moving average. In the meantime, the rate was being approached by the support of the 200-hour simple moving average.
In the near term future, the rate should get squeezed in between the 100 and 200-hour simple moving averages. Afterwards, a break out from the squeeze either up or down should occur.
If the price breaks out to the upside, it would face the resistance of the 55-hour SMA at 1,904.60 first. Afterwards, the 1,910.00 mark could provide resistance.
On the other hand, a potential decline below the 200-hour SMA could look for support in the zone below the 1,890.00 level.
