18 Feb 2015
Gold: drop towards $1200 possible ahead of FOMC minutes – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, views XAU/USD might drop towards 1200 and even 1180 levels ahead of the FOMC minutes, with technicals supporting the lower move.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave an inverted cup and handle break down and fell to fresh six week lows at 1202.71 levels, finally ended lower on Tuesday at 1209.46 levels.”
“Gold in USD fell just ahead of 1200 mark in the previous session as traders shifted their attention towards FOMC minutes release later in the day for fresh cues on Fed’s rate-hike timing which is anticipated to be sooner than expected.”
“Currently, the pair hovers near lows at 1206.44 levels and may extend losses and fall further to retest previous lows at 1202.71 levels.”
“The pair is likely to remain pressured with the bearish daily RSI inching lower at 37.89 levels.”
“A minor recovery may be expected from current levels on the back of a short covering rally after the recent weakness. Hence, the pair may retest daily highs at 1209.60 levels and may head higher beyond that to test 100-DMA located at 1216 levels.”
“Overall, the pair is expected to remain in a range ahead of FOMC minutes with downside cushioned at psychological 1200 levels support area.”
“A break below that level, a fresh sell-off may be triggered dragging the pair lower to 1180 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave an inverted cup and handle break down and fell to fresh six week lows at 1202.71 levels, finally ended lower on Tuesday at 1209.46 levels.”
“Gold in USD fell just ahead of 1200 mark in the previous session as traders shifted their attention towards FOMC minutes release later in the day for fresh cues on Fed’s rate-hike timing which is anticipated to be sooner than expected.”
“Currently, the pair hovers near lows at 1206.44 levels and may extend losses and fall further to retest previous lows at 1202.71 levels.”
“The pair is likely to remain pressured with the bearish daily RSI inching lower at 37.89 levels.”
“A minor recovery may be expected from current levels on the back of a short covering rally after the recent weakness. Hence, the pair may retest daily highs at 1209.60 levels and may head higher beyond that to test 100-DMA located at 1216 levels.”
“Overall, the pair is expected to remain in a range ahead of FOMC minutes with downside cushioned at psychological 1200 levels support area.”
“A break below that level, a fresh sell-off may be triggered dragging the pair lower to 1180 levels.”