On Wednesday, the XAU/USD exchange rate consolidated at 1,750.00. During today’s morning, the rate declined below 1,740.00.
From a theoretical perspective, it is likely that the rate could re-test the lower pattern line in the 1,725.00 area in the nearest future.
If the given pattern holds, it is likely that a reversal north could follow. Note that the price for gold could face the resistance formed by the 55– and 100-hour SMAs near 1,743.00.
Otherwise, it is likely that the rate could breach the given pattern south and target the psychological level at 1,700.00.
