25 Feb 2015
Gold likely to move higher towards $1216.30 – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Dhwani Mehta, XAU/USD is likely to test the 100-DMA at 1216.30 levels on the back of a weaker USD.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) bounced-off major trend line support of 1190 levels and ended higher on Tuesday at 1205, closing above 1200 mark on daily basis.”
“Gold prices pulled away from daily lows and regained upside momentum as the US dollar weakened after Fed Chair Yellen paved the way for more flexibility around the timing of the bank's first rate hike in her testimony.”
“The pair trades now at 1209.62, well supported above the 5-DMA located at 1205.72 levels. The pair is expected to remain supported on a weaker US dollar and is likely to test 100-DMA placed at 1216.30 levels.”
“Moreover, the bearish RSI at 40.81 levels has turned higher indicating a potential upside in the day ahead.”
“A break above 100-DMA, the pair may storm its way higher to test next resistance at 1223 levels.”
“Meanwhile, traders now focus on Yellen’s testimony before the House later today further cues on the pair. In case of negative surprises from the testimony, the pair may fall and retest trend line support at 1192 levels, with a break below 5-DMA”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) bounced-off major trend line support of 1190 levels and ended higher on Tuesday at 1205, closing above 1200 mark on daily basis.”
“Gold prices pulled away from daily lows and regained upside momentum as the US dollar weakened after Fed Chair Yellen paved the way for more flexibility around the timing of the bank's first rate hike in her testimony.”
“The pair trades now at 1209.62, well supported above the 5-DMA located at 1205.72 levels. The pair is expected to remain supported on a weaker US dollar and is likely to test 100-DMA placed at 1216.30 levels.”
“Moreover, the bearish RSI at 40.81 levels has turned higher indicating a potential upside in the day ahead.”
“A break above 100-DMA, the pair may storm its way higher to test next resistance at 1223 levels.”
“Meanwhile, traders now focus on Yellen’s testimony before the House later today further cues on the pair. In case of negative surprises from the testimony, the pair may fall and retest trend line support at 1192 levels, with a break below 5-DMA”