Gold price is above the $1,700 mark on the week's final trading day. Will XAU/USD chart a bull pennant? FXStreet’s Dhwani Mehta analyzes the pair’s technical picture.

XAU/USD needs acceptance above the 50-Daily Moving Average

“Buyers need a decisive break above the powerful resistance at around $1,722 to confirm the bullish continuation pattern. That level is the confluence of the 50 DMA and the falling trendline resistance. The next relevant upside targets are aligned at the $1,730 round figure and the September high of $1,735, above which doors open up for a fresh uptrend towards the $1,750 psychological level.”

“Daily closing below the rising trendline support at $1,707 will invalidate the bull pennant, allowing bears to flex their muscles towards the previous critical resistance now cushion at $1,700 before approaching the weekly low of $1,695. Deeper declines will expose the horizontal 21 DMA at $1,681, which will be the line in the sand for XAU bulls.”