17 Feb 2015
Gold outlook bearish – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Dhwani Mehta, the technical outlook for XAU/USD remains bearish, further predicting a move lower towards 1222 on a break below 1226.85.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) finished higher on Monday at 1231.90 levels, closing above the 50-DMA located at 1231.36 levels as the broad based US dollar weakness pushed the gold prices higher.”
“Currently, the pair trades comfortably above the 50-DMA levels at 1228.43 and finds good support at 5-DMA placed at 1226.85 levels on the daily chart.”
“The pair seems to be forming a potential inverted cup and handle pattern which may indicate a downtrend in the making below the underlying strong support at 1216.35 levels where the 100-DMA is lies.”
“The pair is expected to edge lower today and is on its way to test the 5-DMA support. The daily bearish RSI at 43.65 has also turned lower in sync with lower prices, suggesting a likely downtrend.”
“A break below 5-DMA (1226.85 levels), the pair may drop to retest previous lows at 1222 levels. The fair may further test the crucial support at 100-DMA.”
“In case of a failure to breach that level, the pair may rebound to retest daily highs at 1234 levels and beyond that may test 10-DMA placed at 1237.78 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) finished higher on Monday at 1231.90 levels, closing above the 50-DMA located at 1231.36 levels as the broad based US dollar weakness pushed the gold prices higher.”
“Currently, the pair trades comfortably above the 50-DMA levels at 1228.43 and finds good support at 5-DMA placed at 1226.85 levels on the daily chart.”
“The pair seems to be forming a potential inverted cup and handle pattern which may indicate a downtrend in the making below the underlying strong support at 1216.35 levels where the 100-DMA is lies.”
“The pair is expected to edge lower today and is on its way to test the 5-DMA support. The daily bearish RSI at 43.65 has also turned lower in sync with lower prices, suggesting a likely downtrend.”
“A break below 5-DMA (1226.85 levels), the pair may drop to retest previous lows at 1222 levels. The fair may further test the crucial support at 100-DMA.”
“In case of a failure to breach that level, the pair may rebound to retest daily highs at 1234 levels and beyond that may test 10-DMA placed at 1237.78 levels.”