XAU/USD intraday downtrend persists – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Dhwani Mehta, the intraday downtrend for XAU/USD persists as uncertainty around Greece is expected to keep the demand for USD as high.

Key Quotes

“Gold prices in terms of US dollar (XAU/USD) finally broke below the strong support at 50-DMA on Wednesday and plunged to 100-DMA located at 1216.12 levels. The pair bounced-off that level, although ended the day lower at 1220.58 levels.”

“Currently, the pair seems to have formed a doji on daily chart with the bearish RSI at 40.50 turned flattish. This suggests that the pair awaits fresh incentives after no compromise was reached at the overnight Greece and Euro group meeting on Greek debt negotiations.”

“The pair may climb higher from current levels on a short covering rally after the recent slide and test 1229.50 levels where 5-DMA and 50-DMA converge.”

“However, a general intraday downtrend persists on heightened demand for the US dollar amid ongoing uncertainty surrounding Greece.”

“To the downside, the pair may retest 100-DMA (1216.12) levels ahead of a breach of daily lows.”

“A fresh sell-off may trigger below 100-DMA and the pair may fall further to the next support at 1206 levels.”

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