At the beginning of current week, the XAU/USD exchange rate traded between the 55– and 100-hour SMAs.
From a theoretical perspective, the rate should reverse north from the lower boundary of the falling wedge pattern. However, the price for gold has to surpass the given moving averages.
If the given resistance and pattern hold, it is likely, that the rate could trade sideways around the Fibonacci 38.20% retracement at 1,273.68. If the given pattern does not hold, it is expected, that a breakout south occurs in the short run.
