On Monday, the XAU/USD exchange rate re-tested the lower line of the ascending triangle pattern in the 1,695.00 area. During today’s morning, the rate reversed north.
From a theoretical point of view, it is likely that some upside potential could continue to prevail in the market, and the rate could target the upper pattern line at 1,722.00.
However, note that yellow metal is pressured by the 55-hour SMA near 1,710.00. If the given resistance holds, it is likely that the rate could re-test the lower channel line. If the given pattern does not hold, the price for gold could decline to the 1,690.00 area.
