As expected, the yellow metal’s price has broken out of the borders of the descending triangle pattern. It occurred in a sharp move to the 1,751.30 level. Afterwards, a retracement back up to the 1,765.00 marks occurred.
During the early Wednesday’s trading hours, the pair had declined to the 1,755.00 level.
In the case that the rate declines, the 1.750.00 mark could provide support. If it fails to hold, the rate could gradually reach for the 1,700.00 level.
On the other hand, a potential recovery would find resistance at 1,765.00 and afterwards, the 1,770.00/1,775.00 zone. Note that the 1,770.00/1,775.00 zone was being strengthened by the 55, 100 and 200-hour simple moving averages.
