Gold remained steady against the US Dollar for the second consecutive session on Wednesday. The pair failed to accelerate and surpass the 200-hour SMA, but it likewise lacked the necessary downside momentum to breach the nearby-located 55– and 100-hour SMAs.
This has left the pair in a narrow range between all three moving averages this morning. A breakout should determine the rate’s subsequent movement during the day.
Given that the southern barrier has held strong for several sessions, a breakout of the 200-hour SMA is regarded as a more likely scenario. In this case, the upside target should be the seven-week descending channel at 1,303.00.
Conversely, a fall below 1,290.00 should send the pair back to the senior channel or even lower at 1,280.00.
