XAUUSD Analysis: Tests ascending channel

Dukascopy Bank Team Dukascopy Bank SA

Due to release of better than expected data on import prices the buck appreciated quite sharply against the gold and has practically reached the bottom boundary of a medium ascending channel. From daily perspective it seems that bears are going to try to drag the pair to the 61.8% Fibonacci retracement level at 1,278.96. On hourly chart such scenario is supported by the 200-hour SMA, which is now located above the current market price. However, in order to reach that target the rate has to pass through a combined support set up by the above channel’s boundary and the weekly S1. Although the average market sentiment is 61% bullish, it is unlikely that this support will manage to turn around the exchange rate (unless some unexpected fundamental event will occur).

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Dukascopy Bank Team

Dukascopy Bank SA

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