XAU/USD 1H Chart: Channel Up

Gold prices are currently correcting lower inside a bullish channel in the one-hour chart. At the same time, any abrupt drops are likely to be avoided in the near-term, as long as XAU/USD keeps hovering above the 200-hour SMA, weekly pivot point and the green trend-line that are all placed around the 1,090 mark. Medium and long-term studies assume that purchases of the precious metal will resume over the next trading day. There is also a good opportunity for fresh bullish positions to be opened, as now they are taking up only a moderate majority (55%) of the SWFX market. At the same time, any slump below the 1,090 demand will immediately expose the monthly R1 at 1,084 and weekly S1 at 1,070.