XAUUSD (1275.85): Gold prices fell towards the support level of 1274.69 on Friday. This validated the ascending triangle pattern which saw prices consolidating near the resistance level of 1285.00. The decline to the 1274.69 support level could see prices now attempting to bounce back higher. This is also seen with the hidden bullish divergence on the Stochastics which has posted a lower low compared to the higher low in price. In the near term we expect gold prices to maintain the range above 1274.69 and 1285.03. A breakout from either of these levels will, however, signal further continuation in price.
