Gold remained stable against the Greenback during the most session on Monday, as it was restricted by the 55-hour SMA from below. This lack of movement changed when the pair fell 0.42% and consequently dashed through the 55-, 100– and 200-hour SMAs.
Technical indicators are located in the oversold territory; thus, a recovery is expected in this session. Upside potential, however, is likely to be limited due to the aforementioned SMAs being located in the 1,314.00/1,320.00 area. The 38.20% Fibo retracement and a five-week trend-line are also situated nearby.
If looking at downside potential, the yellow metal has no support until the senior channel and the 50.0% Fibo at 1,310.00. Thus, the pair might fall considerably if the junior channel at 1,310.00 is breached.
