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3 Mar 2015
Gold supported whilst above $1200 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, notes technicals suggest that XAU/USD might test 1215.54 levels, with the pair likely to remain supported whilst above 1200 levels.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave a false symmetrical breakout in the previous session as the pair gave back gains and ended lower on Monday at 1204.65 levels. The pair bounced-off 10-DMA located at 1224.43 levels and fell to levels just ahead of USD 1200 after USD bulls jumped back into bids on better than expected US Markit’s manufacturing PMI and consumer spending data.”
“At the moment, the pair remains well supported above 10-DMA located at 1207.70 levels. The pair may inch higher and test 100-DMA placed at 1215.54 levels above a break of daily highs of 1211 as a broadly weaker US dollar on a profit booking sell-off may buoy gold prices.”
“Moreover, daily RSI has ticked higher indicating a likely chance of further upside. However, the upside may remain capped by 100-DMA as the greenback may rebound from lower levels and weigh on the pair, pushing it to retest 1200 levels and below that 1190 levels.”
“Overall, the pair is likely to remain supported above crucial 1200 levels in absence of significant US data later in the day.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave a false symmetrical breakout in the previous session as the pair gave back gains and ended lower on Monday at 1204.65 levels. The pair bounced-off 10-DMA located at 1224.43 levels and fell to levels just ahead of USD 1200 after USD bulls jumped back into bids on better than expected US Markit’s manufacturing PMI and consumer spending data.”
“At the moment, the pair remains well supported above 10-DMA located at 1207.70 levels. The pair may inch higher and test 100-DMA placed at 1215.54 levels above a break of daily highs of 1211 as a broadly weaker US dollar on a profit booking sell-off may buoy gold prices.”
“Moreover, daily RSI has ticked higher indicating a likely chance of further upside. However, the upside may remain capped by 100-DMA as the greenback may rebound from lower levels and weigh on the pair, pushing it to retest 1200 levels and below that 1190 levels.”
“Overall, the pair is likely to remain supported above crucial 1200 levels in absence of significant US data later in the day.”