Last week, the XAU/USD exchange rate revealed an ascending triangle pattern. On Friday, the rate tested the upper pattern line at 1,722.00. During today’s morning, the rate reversed south from the given line.
Note that yellow metal gained support from the 100– and 200-hour SMAs near 1,703.00. If the given support holds, it is likely that a reversal north could occur, and the rate could re-test the upper pattern line.
Otherwise, it is likely that bears could continue to prevail in the market in the short term. In this case the price for gold could reach the lower pattern line in the 1,695.00 area. If the given pattern holds, a reversal north could follow.
