As the resistance of the 55-hour simple moving average approached the yellow metal’s price from above, it pushed it into a test of the lower trend line of the recently added declining wedge pattern. On Friday morning, the lower trend line of the pattern was pierced, as the metal shortly traded below it before retracing back up.
In the near term future, the price was expected to test the resistance of the 55-hour simple moving average. If the SMA gets passed, the rate would aim at the resistance of the 100-hour SMA, which was located near the 1.795.00 level.
On the other hand, if the 55-hour SMA pushes the price down, it would break the declining wedge pattern and look for support in round price levels.
