Range Markets

The yellow metal took advantage of the weaker US Dollar on Tuesday, thus managing to surge by 1.44% and reaching the 1,340.00 mark late in the evening. The pair breached the prevailing four-week channel down along the way, at the same time providing the second upper confirmation of a more junior pattern.

Technical indicators are in favour of a fall in this session that should be targeted towards the combined support of the 200-, 55– and 100-hour SMAs near 1,325.00. The general direction, however, should be tended north this week, seemingly along the lines of the aforementioned junior channel, in order to test the most senior pattern circa 1,355.00.

Meanwhile, gains should be capped near the weekly R1 at 1,350.00 today.

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