Gold might fall down to $1185 – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Dhwani Mehta, XAU/USD might weaken to 1185 on a break below 1192.20, with technicals supporting the bearish view.

Key Quotes

“The pair, currently trades around 1194 levels having displayed a clear channel break down on daily charts.”

“The pair has formed a bearish flag pattern as seen on intraday chart and with the break down, the pair is likely to fall further to 10-DMA located at 1185 levels with a break below the daily lows of 1192.20 levels.”

“The daily RSI at 51.19 has inched lower clearly pointing to the continuation of the downtrend.”

“The upside seems limited as the pair faces stiff resistance at 1200 levels and beyond that at trend line resistance placed at 1202.18 levels.”

“Overall, the pair is likely to extend losses as the US dollar is expected to remain firmer on the back of Yellen’s comments and ahead of a series of US economic releases due later in the day.”

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