XAUUSD Analysis: Finds support at 1,246.74
|Even though the exchange rate was moving in a falling wedge formation and was about to reach the bottom trend-line of a medium-term descending channel, the rebound did not happen. Instead, the pair continued to fall to up until the monthly S2 located at 1,246.74. The drop was mainly based on funding bill that was sent to President Trump by the Congress in order to avoid government shutdown. After such rapid appreciation of the buck, in first half of this trading session the yellow metal is expected to recover some lost positions, tending to reach an area near the 1,252.00 mark. However, this recovery might be cancelled in case of release of the better than expected employment data. Moreover, there is a need to take into account an ongoing optimist related to progress on tax reform.
Interested in XAUUSD technicals? Check out the key levels
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