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15 May 2015
Gold might dip to $1212 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees losses ahead for XAU/USD towards 1212 if the pair breaks below the 200-DMA at 1217.25, while holding above it would lead to a retest of 1221.30.
Key Quotes
“Currently, XAU/USD trades near 1219 levels, retreating sharply from fresh three month highs and sits comfortably above 200-DMA resistance–turned support located at 1217.25. The pair pared previous gains and fell in red largely on profit-taking after the recent strength.”
“Traders prefer to lock-in gains ahead of a batch of US macro data later in the NA session which may major impact on the pair. Moreover, the US dollar takes a breather from its downslide and recovers slightly from three month lows, which has also contributed to the weakness in gold today.”
“At the moment, the daily RSI at 60 has turned lower indicating the pair may retest 200-DMA from current levels. A break below the last losses could accelerate pushing XAU/USD to 100-DMA support located around 1212 levels.”
“However, a failure to breach the 200-DMA support, XAU bulls may take over once again and take the pair higher for a retest of daily highs at 1221.30 and beyond that 1227.20 (May 14 High) levels.”
“Overall, the pair is likely to consolidate previous gains ahead of US economic releases which may provide fresh cues on the USD moves.”
Key Quotes
“Currently, XAU/USD trades near 1219 levels, retreating sharply from fresh three month highs and sits comfortably above 200-DMA resistance–turned support located at 1217.25. The pair pared previous gains and fell in red largely on profit-taking after the recent strength.”
“Traders prefer to lock-in gains ahead of a batch of US macro data later in the NA session which may major impact on the pair. Moreover, the US dollar takes a breather from its downslide and recovers slightly from three month lows, which has also contributed to the weakness in gold today.”
“At the moment, the daily RSI at 60 has turned lower indicating the pair may retest 200-DMA from current levels. A break below the last losses could accelerate pushing XAU/USD to 100-DMA support located around 1212 levels.”
“However, a failure to breach the 200-DMA support, XAU bulls may take over once again and take the pair higher for a retest of daily highs at 1221.30 and beyond that 1227.20 (May 14 High) levels.”
“Overall, the pair is likely to consolidate previous gains ahead of US economic releases which may provide fresh cues on the USD moves.”