After reaching the upper boundary of a two-month channel down and its weekly high at 1,310.00 mid-Friday, the yellow metal began depreciating against the US Dollar as a result of which it was trading at the 100-hour SMA early this morning.
Technical indicators are generally neutral for this session. Given that there is a bank holiday in the US, big leaps either direction are unlikely. In terms of the downside, it is expected that the pair does not fall below the 200-hour SMA near 1,290.00, as this level is likewise reinforced by the 55-period SMA on the four-hour chart.
Meanwhile, bullish gains should be capped near the upper channel line at 1,307.00. This scenario is likewise supported by the six-day channel whose upper boundary is located at 1,310.00.
