Morning outlook - XAU/USD heads towards 1,292.91
- The way the bullion moved yesterday confirmed that a theory that a support area formed by a combination of the 200-hour SMA and the weekly PP near 1,284.70 was a stronger barrier than the 55- and 100-hour SMAs.
- As a result, the pair broke to the top and has practically reached the monthly R1 at 1,292.91.
- Most probably, today the yellow metal is going to repeat this attempt.
- Such assumption is supported by an aggregate of technical indicators, which sends a strong buy signal.
- However, even if the gold will lose some value while waiting for beginning of the Jackson Hole Symposium, the drop is unlikely to go below the above combined support level.
