On Monday, the XAU/USD exchange rate revealed a rising wedge pattern, as it reversed south from the upper pattern line. During today’s morning, the pair was testing the support formed by the 100-hour SMA near 1,730.00.
If the given support holds, it is likely that a reversal north could occur, and the price for gold could target the upper pattern line, as well the monthly R1 at 1,767.34.
Meanwhile, note that yellow metal could be pressured by the 55-hour SMA near 1,743.00. If the given moving averages hold, it is likely that gold could consolidate against the US Dollar in the short run.
