Following a breakout of a five-week ascending channel early on Thursday, the yellow metal was unable to fall below the 1,324.00 mark. As a result, it remained near its bottom line for the whole session.
The pair tried to push higher during the Asian session; this move, however, was stopped by the strong resistance of the 55-, 100– and 200-hour SMAs and the 23.60% Fibo. It is expected that the long-term moving average which sets the highest point of this cluster is not breached.
The strength of this resistance barrier suggests that Gold is more likely to decline during this session. There is still some significant downside potential, as the nearest support is set by the distant 38.20% Fibo retracement at 1,316.67
