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22 Apr 2015
Gold sees a limited downside risk – FXStreet
FXStreet (Barcelona) - According to Dhwani Mehta, FXStreet Editor and Analyst, XAU/USD is likely to remain supported to the downside by 1195 levels as Dollar extends its correction.
Key Quotes
“Currently, XAU/USD trades near highs around 1202 levels, holding above 5-DMA and 10-DMA crossovers circa 1200 levels. The pair finds good support at 50-DMA and trend line support confluence at 1195 levels. However, with the US dollar extending its corrective slide, XAU/USD is expected to remain supported amid a data light session for the third day in a row.”
“Later in the New York session, US existing home sales numbers may provide fresh take on the USD moves which may have major impact on XAU/USD.”
“The daily RSI in the bull range at 52 has turned flattish indicating no clear direction at the moment. Hence, to the upside, the pair may head for a likely retest of previous highs at 1204.33 and beyond that may test a strong resistance zone formed around 1209 levels. XAU bulls may storm their way through the lasts and may touch 100-DMA resistance at 1212.33.”
“The downside seems limited so long as the pair holds above key support at 1195 levels.”
Key Quotes
“Currently, XAU/USD trades near highs around 1202 levels, holding above 5-DMA and 10-DMA crossovers circa 1200 levels. The pair finds good support at 50-DMA and trend line support confluence at 1195 levels. However, with the US dollar extending its corrective slide, XAU/USD is expected to remain supported amid a data light session for the third day in a row.”
“Later in the New York session, US existing home sales numbers may provide fresh take on the USD moves which may have major impact on XAU/USD.”
“The daily RSI in the bull range at 52 has turned flattish indicating no clear direction at the moment. Hence, to the upside, the pair may head for a likely retest of previous highs at 1204.33 and beyond that may test a strong resistance zone formed around 1209 levels. XAU bulls may storm their way through the lasts and may touch 100-DMA resistance at 1212.33.”
“The downside seems limited so long as the pair holds above key support at 1195 levels.”