Formation of a minor pennant pattern, indeed, pushed the further downwards. However, the bottom edge of a junior ascending channel was expected to withhold the pressure.

The fact that the buck continued to appreciate against the gold in based not only on release of satisfying macroeconomic data yesterday.

Most probably the maximum that the pair has reached on November 27 was interpreted as a rebound from the upper trend-line of a larger descending channel, while the subsequent massive plunge simultaneously signified a breakout from the junior rising wedge formation.

If this view dominates the market, then the bearish pressure is expected to continue until the pair reaches the lower support line of a dominant long-term ascending channel near 1,271.00.

As for today, unless some event causes high volatility the pair is likely to fluctuate between the 1,276.50 and 1,271.50 levels.