Morning outlook - XAU/USD finally breaks weekly R1
- The way the yellow metal moved yesterday gives us an important clue for the further analysis. First, the buck failed to drag the pair down through the 55-hour SMA. Second, the gold managed to recover and break through the weekly R1 at 1,339.42. These facts suggest that the today the exchange rate most likely will fail once again to sneak to the bottom.
- And in the meantime, it has a good chance to try to reach the monthly R1 at 1,348.36, using the abovementioned support. However, both these assumptions hold true until a release of the US ISM Non-Manufacturing PMI at 14:00 GMT. An effect from this data release might either help the bullion to jump even higher, or will strengthen the buck and push the pair closer to the 100-hour SMA.
