XAU/USD 1H Chart: Channel Down

In the bigger picture it may seem that XAU/USD is trading within the boundaries of the rising wedge, but more locally the instrument is fluctuating between two parallel downward-sloping trend-lines.

And while the upper boundary is creating resistance at 1,330.70, the lower one, if reached, is likely to trigger a rally from 1,310.00. For the latter scenario to materialise, however, the price will have to close beneath the 200-hour SMA and a potential up-trend support line of the mentioned rising wedge, which appears to be a difficult task. This is evidenced by the distribution between the long and short positions—60% and 40% accordingly.