XAU/USD Analysis: Likely to decline

XAU/USD

During Tuesday's trading session, the XAU/USD exchange rate breached the descending triangle pattern south and reached the support level formed by a combination of the monthly S1 and the Fibo 38.20% at 1,274.13.  

If the given support level holds, it is likely that the price for the gold reverses north and tries to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs in the 1,283.16/1,293.85 range. 

Otherwise, it is expected, that the rate continues to trade down. In this case, the price for gold could reach the psychological level at 1,270.00.

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