During Thursday, the XAU/USD exchange rate reached the 1,390.00 level. During today’s morning, the rate reversed south from the upper boundary of the long-term ascending channel at 1,402.50.
From a theoretical perspective, it is expected, that the price for gold could go downside, as it has to target the lower channel line. However, it is unlikely, that gold could tumble lower than 1,371.41 due to the support of the 55-hour SMA.
On the other hand, the exchange rate could reverse north from the psychological level at the 1,380.00 mark and re-test the upper channel line. If the given channel does not hold, gold could exceed the 1,410.00 level.