XAU/USD finds major support at 1278.16 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, notes that XAU/USD has found a major support at 1278.16 levels and the likelihood of the pair testing 1285 levels remains high.

Key Quotes

“Last week’s below estimates US Q4 GDP numbers fuelled a USD 28 rally in gold prices in terms of US dollar (XAU/USD) settling higher on the week at 1283.20 levels.”

“On the hourly chart, the pair is comfortably supported by the hourly 5-DMA located at 1279.81 levels. A major supports lies at hourly 100-DMA placed at 1278.16 where the pair has managed to bounce-off twice from that levels.”

“To the upside, the pair is expected to test hourly 10-DMA placed at 1281.32 levels, above which the pair may retest 1285 levels. Bullish hourly RSI at 62.48 levels also supports the case for an upside in the making.”

“However, a fresh sell-off may be triggered below 1278.16 levels which may drag the pair down to test hourly 20-DMA located at 1275.50 levels.”

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