Technical tools: simple moving averages (20, 55 and 100), relative strength index, Bollinger bands, Fibonacci retracement levels, channel lines and trendlines.
The following daily chart shows the bullion easing against the US dollar in the aftermath of the French elections. Though, it has recently resumed trending higher amid US political turmoil and terrorist attacks in Manchester.
Daily SMAs are switching positions, without providing a clear direction. The 20-day SMA (1.241,76) is below the 55-day SMA (1.248,09) and the 55-day is above the 100-day SMA (1.234,29).
The RSI is ticking at 53, still not exhausted and implying further scope to congestion on the upside.
I’m expecting the exchange rate trading inside the ascending channel represented in the following chart during the weeks and month ahead.
The exchange rate shall consolidate gains around the 61.80% Fibonacci retracement level, followed by an expansion and finalized by an ease towards the before mentioned rationale level, as represented in the following chart.
For all these factors, my expected target for the 3rd July, 12:00 GMT: 1.262,53.