XAU/USD analysis: Breaks pattern

Dukascopy Bank Team Dukascopy Bank SA

XAU/USD

On Thursday, the XAU/USD exchange rate plunged by 312 pips or 1.74%. A breakout occurred through the lower boundary of an ascending channel pattern during Thursday's trading session.

Given that a breakout has occurred, the commodity is likely to continue to edge lower during the following trading session. The possible target for sellers could be near yesterday's low at 1755.00.

However, technical indicators suggest on the daily time-frame chart that the precious metal could gain strength against the US Dollar within this session.

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Dukascopy Bank Team

Dukascopy Bank SA

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