On Monday, the XAU/USD exchange rate reversed south from the upper 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. In this case it is likely that the rate could target the upper channel line located in the 1,710.00 area.
However, note that the exchange rate is pressured by the 55-hour moving average near 1,675.00. Thus, a breakout south could occur. Note that the rate would have to surpass the 200-hour SMA near 1,642.00.
