On Wednesday, the XAU/USD exchange rate increased to the upper boundary of the falling wedge pattern at 1,492.00. During today’s morning, the rate was trading near the given line.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case, the price for gold could target the psychological level at 1,478.00/1,480.00.
However, note that yellow metal could face support of the 55– and 100-hour moving averages, currently located circa 1,488.00. Thus, if the given pattern does not hold, gold could target the 200-hour SMA at 1,495.49.
