On Wednesday, the XAU/USD exchange rate reversed north from the lower boundary of the ascending triangle pattern. During today’s morning, the rate was trading near the upper pattern line at 1,722.00.
From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. Meanwhile, it is unlikely that a breakout from the pattern could occur due to the support formed by the 55-, 100– and 200-hour SMAs in the 1,705.00 area.
On the other hand, it is likely that bulls could continue to prevail in the market, and the exchange rate could breach the given pattern north, and the price for gold could exceed the 1,725.00 level.
