Tuesday’s trading session introduced no changes to Gold’s movement against the US Dollar. The main reason was the strong support/resistance barriers formed by the monthly S1 from above and the 55– and 100-hour SMAs from below. This narrow trading range should soon surrender.
Given that the pair was starting to breach the moving averages at the time of this analysis, it seems that the overall direction should be south today. Technical indicators are likewise bearish. The nearest support level is the senior channel and the 61.80% Fibonacci retracement at 1,285.00, while this fall could still continue until 1,280.00.
Conversely, a strong resistance level is set by the 200-hour SMA at 1,300.00. Even if bulls prevail, this level should not be surpassed today.
