20 Feb 2015
Gold likely to test $1200 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, gives the technical outlook for XAU/USD, expecting a retest of 1200 levels on a move below the low at 1205.50.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) remained higher all through the day, before bouncing-off day’s high near 10-DMA levels and ended lower on Thursday at 1208.89 levels. The pair remained elevated on a broadly lower USD, however the US dollar regained strength after mixed US economic releases and pushed XAU/USD lower.”
“Gold in USD currently trades at 1206.73 levels, supported above previous lows at 1205.50. However, with the daily RSI bearish at 38.27 levels, the pair is expected to remain weak and may retest USD 1200 levels on a break below previous lows.”
“However, the downside may be cushioned ahead of Greece-Euro group meeting later today which may fuel safe-haven demand for the yellow metal.”
“To the upside, the pair may find a strong resistance at 5-DMA (1214 levels) beyond daily highs at 1209.70. A break above 5-DMA, XAU bulls may take charge and storm its way higher to retest 10-DMA located at 1221.60 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) remained higher all through the day, before bouncing-off day’s high near 10-DMA levels and ended lower on Thursday at 1208.89 levels. The pair remained elevated on a broadly lower USD, however the US dollar regained strength after mixed US economic releases and pushed XAU/USD lower.”
“Gold in USD currently trades at 1206.73 levels, supported above previous lows at 1205.50. However, with the daily RSI bearish at 38.27 levels, the pair is expected to remain weak and may retest USD 1200 levels on a break below previous lows.”
“However, the downside may be cushioned ahead of Greece-Euro group meeting later today which may fuel safe-haven demand for the yellow metal.”
“To the upside, the pair may find a strong resistance at 5-DMA (1214 levels) beyond daily highs at 1209.70. A break above 5-DMA, XAU bulls may take charge and storm its way higher to retest 10-DMA located at 1221.60 levels.”