As previously expected, the yellow metal was driven by upside risks on Thursday. The scope of this move, however, was not in line with the forecasts. After testing the monthly S1 at 1,309.92 for a brief period of time, the pair managed to reverse and push up to the 55-hour SMA and the weekly S1—area where it was trading early on Friday. Technical indicators are neutral about the pair’s possible direction in this session; the overall tendency, however, should remain north. If the aforementioned resistance area is breached, traders could expect a continuous appreciation towards the 23.60% Fibo and the 200-hour SMA near 1,338.00; meanwhile, losses are unlikely to exceed the 1,305.00 mark. By and large, lack of fundamentals today might result in a period of consolidation.
