Technical Analysis: XAU/USD forms triangle

Downside risks prevailed on Thursday, thus guiding Gold past the 55-, 100– and 200-hour SMAs and down to 1,223.00. This has revealed the existence of an ascending triangle. The upper boundary of this pattern is a weekly resistance at 1,235.00, while lower one is a channel line.

In line with this pattern, the pair should reverse back to the upside and test the aforementioned resistance in this session. However, the strong cluster at 1,230.00 could prevent the yellow metal from appreciation. In this scenario, there is no support until the monthly S2 at 1,206.00.