Technical analysis : XAU/USD slips below weekly S1

After making a breakout from the falling wedge formation, the yellow metal was expected to continue the surge at least until the clash with 200-hour SMA. However, a plunge in Euro amid the ECB meeting led to downfall of the exchange rate. As a result, it has finally slipped below the weekly S1 located at the 1,269.58 mark. 

Such outcome simultaneously signified dissolution of the junior ascending channel and increased probability of a contact with combined support formed by the 200-day SMA and the bottom trend-line of the dominant ascending channel. 

In fact, on hourly chart at the moment there are no technical barriers between the above barriers and the exchange rate. However, a release of the US Advance GDP might alter this scenario and restore the value of gold.