The yellow metal’s price has passed below previous September low levels. On Tuesday, the pair touched a new low level by reaching the 1,730.00 mark. Afterwards, the commodity began a recovery.
On Wednesday, the rate had recovered to the 1,740.00 level. Meanwhile, Dukascopy Analytics spotted that the pair has been declining in a channel down pattern since September 23. On Wednesday morning, the yellow metal’s price was testing the resistance of the mentioned channel. In addition, the 55-hour SMA had approached the rate from above and was located near 1,745.00.
If the rate bounces off the combined resistance of the upper trend line of the channel down and the 55-hour simple moving average, a test of the support of the 1,730.00 could occur. Below the 1,730.00 mark, the 1,700.00 could serve as a major support level. On the other hand, a potential passing of the resistance levels would almost immediately find resistance in the 100-hour simple moving average at 1.750.00. Above the 100-hour SMA, the 200-hour SMA at 1,757.00 might serve as resistance.
