On Wednesday, the XAU/USD exchange rate reversed north from the lower boundary of the rising wedge pattern. During today’s morning, the rate was testing the lower pattern line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future, and the price for gold could target the upper pattern line located circa 1,570.00.
However, note that the yellow metal is pressured by the 55-, 100– and 200-hour SMAs, currently located circa 1,555.00. Thus, some downside potential could prevail.
