Range Markets

Until beginning of new trading session, a combination of the 55-, 100- and 200-hour SMAs in conjunction with the monthly PP managed to constrain the pair from breaking to the top.

However, once the news that the US House of Representatives passed its own version of the tax reform, the gold prices inched to the top. On the one hand, this advance confirmed existence of a minor ascending channel, which, in turn, implies further appreciation of the yellow metal.

On the other hand, further road to the north is obstructed by the 1,283.90 and 1,286.13 resistance levels. In short term, the pair is likely to make a rebound. But, generally, the exchange rate is expected to continue heading towards the upper boundary of a medium-term ascending channel, which is supported by the 61% aggregate bullish market sentiment.