During the previous trading session, the XAU/USD exchange rate plummeted to the 1,340.00 level. During today's morning, the rate dropped to the support level formed by the 100– and 200-hour SMAs, as well the monthly R2 at 1,333.67
If the given support holds, it is expected, that a reversal north could occur in the nearest future. However, note, that the rate is pressured by the 55-hour SMA, currently located at 1,342.24.
If the given support does not hold, it is likely, that the price for gold could continue to decline. A possible downside target is the psychological level at the 1,325.00 mark.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.