The yellow metal was trading sideways against the US Dollar on Monday stranded between the 55– and 100-hour SMAs. In addition, the pair was likewise moving along the bottom boundary of a junior two-week channel up.
The rate lingering near this line suggests that a downside breakout is likely to occur today. This would send the pair lower down to the 200-hour SMA at 1.294.00. This level might likewise be surpassed in case of sluggish US CB Consumer Confidence data at 1400GMT. The ultimate daily low should be 1,290.00.
Meanwhile, Gold moving above the 55-hour SMA should also result in a bullish breakout of the seven-week channel at 1,305.00. A subsequent surge is likely to follow, thus setting the 1.317.00 level as the next possible target.
