XAU/USD 1H Chart: Ascending Wedge
XAU/USD is trading in two formations simultaneously. The more senior pattern is an ascending wedge which was formed in early July. The given pair has likewise formed a minor broadening wedge which is located within this senior pattern. Currently, the yellow metal has stopped at the lower boundary of the latter, failing to breach this line on two occasions. However, the rate may stop at the 100– and 55-hour SMAs in the 1,251.21 territory and push lower towards the 200-hour SMA located circa 1,242.20. In general, it is not expected that the senior patter is breached during this week, thus favouring a scenario where Gold either goes along its bottom boundary or accumulates strength and pushes north in a more steeper motion.
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