The XAU/USD exchange rate continued to trade within the ascending triangle pattern.
From a theoretical point of view, it is likely that the rate could continue to trade within the given pattern in the short term.
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, the US Retail Sales on Friday is being released at 12:30 GMT.
XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate reversed north from the lower boundary of the ascending triangle pattern. During today's morning, the rate was trading near the upper pattern line at 1,722.00.
From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. Meanwhile, it is unlikely that a breakout from the pattern could occur due to the support formed by the 55-, 100– and 200-hour SMAs in the 1,705.00 area.
On the other hand, it is likely that bulls could continue to prevail in the market, and the exchange rate could breach the given pattern north, and the price for gold could exceed the 1,725.00 level.
Hourly Chart
On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,649.00 mark.
Daily Candle
Traders remain long on gold
On Thursday, the Swiss Foreign Exchange sentiment has been 56% long.