A release of better than expected data on the US non-manufacturing activity initially caused a great anxiety in the markets. However, a sharp appreciation of the buck was constrained by the 55-hour and 100-day SMAs near 1,273.20. On the one hand, gold traders most probably are going use the above support, as a trampoline, to try to restore some lost positions and return the rate back to the 1,281.00 mark. On the other hand, a presence of the 61.8% Fibonacci retracement level, the 100- and 200-hour SMAs as well as the upper boundaries of two larger descending channels is likely to neutralize the potential surge. Despite the 60% average bullish sentiment, the pair is expected to continue to move in the southern direction, in accordance with the general downtrend.
