XAUUSD Analysis: Breaches 200-hour from below
|Contrary to expectations, the upper channel boundary and the 200-hour SMA near 1,330.00 did not provide enough resistance to pressure the rate south on Tuesday.
The pair remained sticky to this cluster, thus providing and early indication of the likely breakout north, even despite signals technical signals pointing to the prevailing bearish sentiment. By Wednesday morning, the yellow metal had reached the monthly PP, the weekly R1 and the 23.60% Fibo retracement circa 1,338.00.
The base scenario favours the pair edging lower during the following trading hours just to make a rebound from the breached channel. Subsequently, the 200-hour might successfully support the pair and thus allow for a continuous surge, setting the 1,350.00 mark as today's high.
Interested in XAUUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.