Gold Technical Analysis: Manages to hold above 200-hour EMA/trading range support

   •  The precious metal has been oscillating in a broader trading range over the past week or so, forming a rectangular chart pattern on short-term charts.

   •  The fact that bulls have repeatedly failed to make it through the key $1300 psychological mark points to a possible long-unwinding pressure in the near-term.

   •  Moreover, technical indicators on hourly charts have just started losing positive momentum and further add credence to expectations of some follow-through pull-back.

   •  However, the lower end of the trading range now coincides with 200-hour EMA and acting as immediate strong support since the US trading session on Tuesday.

Gold 1-hourly chart

   •  Hence, it would be prudent to wait for a sustained breakthrough the mentioned support before traders start positioning for any further near-term downtick.

   •  Alternatively, a sustained breakthrough the trading range resistance, leading to a subsequent strength beyond the said handle will negate any short-term negative outlook.