On Tuesday, the XAU/USD exchange rate broke the lower boundary of the rising wedge pattern. During today’s morning, the rate was testing the resistance formed by the 55– and 100-hour SMAs, as well the monthly R1 at 1,667.00.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. Note that the rate could gain support of the 200-hour SMA near 1,640.00.
If the given support level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future. It is unlikely that bulls could prevail, and the pair could exceed the 1,685.00 level.
