On Thursday, the XAU/USD exchange rate reversed south from the upper boundary of the ascending triangle pattern at 1,496.00. During today’s morning, the rate was testing the support formed by the 55-, 100– and 200-hour SMAs circa 1,489.59.
If the given moving averages hold, it is likely that some upside potential could prevail in the market, and the rate could re-test the upper pattern line.
If the given moving averages do not hold, yellow metal could decline to the lower triangle line at 1,488.00. If the given pattern does not hold, a breakout south could occur.
