After the massive drop caused by the appreciation of the US Dollar on Tuesday, the yellow metal’s price traded sideways between two pivot point levels. However, it was about to continue the decline.
The reasons for such hypothesis are two. First is the fact that the metal has fully confirmed the breaking of the previous dominant channel up pattern. Second is the fact that the fall of Tuesday revealed a junior channel down pattern.
In general, the surge should occur, when the upper trend line of the junior pattern forces the commodity price lower through the support of the weekly PP, which is located at the 1,316.08 level.
