24 Mar 2015
Gold underpinned on USD weakness – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, gives the technical outlook for XAU/USD, noting that the pair might test the key support at 1181.
Key Quotes
“The pair is seen struggling around 1185, and is expected to fall from current levels and may test the crucial support at 1181 levels where the 20-DMA and trend line support converge. Also, the daily RSI has turned lower at 48.16 levels suggesting a likely test of 1181 levels.”
“A fresh demand for XAU may be witnessed at 1181 levels which may lift the pair higher to retest daily highs and beyond that level XAU bulls may storm its way through the 1200 mark.”
“However, in case of a breach of 1181 levels, selling pressure is likely to intensify, pushing the pair to test the next support at 1170 levels.”
“Overall, the pair remains underpinned on USD weakness ahead of the key US CPI data and so long as the crucial 20-DMA support is breached.”
Key Quotes
“The pair is seen struggling around 1185, and is expected to fall from current levels and may test the crucial support at 1181 levels where the 20-DMA and trend line support converge. Also, the daily RSI has turned lower at 48.16 levels suggesting a likely test of 1181 levels.”
“A fresh demand for XAU may be witnessed at 1181 levels which may lift the pair higher to retest daily highs and beyond that level XAU bulls may storm its way through the 1200 mark.”
“However, in case of a breach of 1181 levels, selling pressure is likely to intensify, pushing the pair to test the next support at 1170 levels.”
“Overall, the pair remains underpinned on USD weakness ahead of the key US CPI data and so long as the crucial 20-DMA support is breached.”