Bears have been guiding XAU/USD for the second consecutive session. This sentiment was strong enough to allow for a breakout of the 100– and 200-hour SMAs and the bottom boundary of a short-term channel up circa 1,325.00. By Friday morning, the pair had returned at a previously-breached channel and the 38.20% Fibo retracement. According to technical indicators, some downside potential could still be realised in this session. The ultimate daily low should be the 1,305.00 area where the lower line of the senior channel and the monthly S1 are located. Meanwhile, the pair has formed a minor falling wedge that could be soon breached to the upside, thus sending the yellow metal towards the aforementioned SMAs, with gains being capped near 1,330.00.
