Yesterday, the XAU/USD exchange rate revealed a medium-term ascending channel. During Thursday morning, the rate was trading at 1,730.00.
Note that yellow metal is supported by the 55– and 100-hour SMAs near 1,725.00. Thus, some upside potential could prevail in the market, and the rate could target the resistance area in 1,740.00/1,745.00.
On the other hand, it is likely that gold could trade sideways against the US Dollar in the 1,730.00 area within the following trading session.
Also, it is unlikely that a breakout south from the channel could occur, as the rate could gain support from the 200-hour SMA near 1,720.00.
