No trading of XAU/USD occurred on Friday, so the pair started the day from its Thursday’s closing position.
The yellow metal managed to gain some strength against the US Dollar during the Asian session today and thus breached the prevailing short-term channel. Its further advance above the 1,330.00 was restricted by the 55– and 200-hour SMAs.
Technical indicators flash bullish signals, suggesting that the aforementioned resistance, likewise reinforced by the 23.60% Fibo, should surrender. In case this scenario occurs, the pair will target the 100-hour SMA at 1,340.00—a level which should mark today’s high.
On the other hand, the pair has more potential to move lower in this session, as the nearest support, apart from the monthly PP at 1,330.00, is set only by the weekly PP at 1.3200.00.
