Similarly to other major pairs against the US Dollar, XAU/USD showed no massive changes to its position during the previous trading session. Slight upside momentum resulted in a false breakout from a two-week channel, but the pair did return back in this pattern later in the day.
It is likely that the yellow metal maintains its slight tendency south in this session. However, it does have to breach the 55-hour SMA near 1,320.00 beforehand to confirm this scenario. The ultimate low today should be the 200-hour SMA at 1,314.00.
In case the aforementioned moving average is not breached, the pair should remain trading along this line. No significant leaps northwards are likely.
