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24 Feb 2015
XAU/USD might test 1216.38 on Yellen’s testimony – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, gives the technical outlook for XAU/USD, expecting a move towards the 100-DMA at 1216.38 on a dovish surprise in Fed Yellen’s testimony.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) bounced-off lows and ended modestly flat on Monday at 1203.19, breaching 1200 levels for yet another time, reaching daily lows at 1190.95 levels. The pair trades now at 1202.48, supported above the crucial trend line support at 1200 levels.”
“The pair formed a doji candle on daily charts in the previous session which indicates indecisiveness between bulls and the bears.”
“Moreover, the bearish RSI at 37 levels has turned flattish suggesting lack of clear direction for the pair.”
“The pair may trade cautious ahead of Fed Chairperson Yellen’s testimony later in the day which may provide fresh cues on the timing of the US interest rate hike. Moreover, the pair is likely to continue its bearish tone as any hawkish comment from Yellen may open doors for a retest of previous lows at 1190.95 and further below that at 1182 levels.”
“In case of dovish surprise, the pair may break above the stiff resistance at 5-DMA located at 1205.92 levels and climb higher to retest next barrier at 100-DMA placed at 1216.38 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) bounced-off lows and ended modestly flat on Monday at 1203.19, breaching 1200 levels for yet another time, reaching daily lows at 1190.95 levels. The pair trades now at 1202.48, supported above the crucial trend line support at 1200 levels.”
“The pair formed a doji candle on daily charts in the previous session which indicates indecisiveness between bulls and the bears.”
“Moreover, the bearish RSI at 37 levels has turned flattish suggesting lack of clear direction for the pair.”
“The pair may trade cautious ahead of Fed Chairperson Yellen’s testimony later in the day which may provide fresh cues on the timing of the US interest rate hike. Moreover, the pair is likely to continue its bearish tone as any hawkish comment from Yellen may open doors for a retest of previous lows at 1190.95 and further below that at 1182 levels.”
“In case of dovish surprise, the pair may break above the stiff resistance at 5-DMA located at 1205.92 levels and climb higher to retest next barrier at 100-DMA placed at 1216.38 levels.”