Yesterday, the XAU/USD exchange rate tried to surpass the 1,640.00 level. During Friday morning, the rate was consolidating in the 1,620,00 area.
Given that yellow metal is supported by the 55-hour moving average, currently located near 1,620.00, it is likely that some upside potential could prevail in the market. In this case the rate could face the resistance formed by the monthly R1 at 1,668.23.
However, if the exchange rate fails to surpass the 1,640.00 level, it is likely that it could continue to consolidate. Also, it is unlikely that bears could prevail in the market, as the rate could decline below the 200-hour SMA near 1,545.00.
