1 May 2015
Gold set to drop lower – FXStreet
FXStreet (Barcelona) - According to Dhwani Mehta, FXStreet Editor and Analyst, XAU/USD is likely to extend losses towards 1180.58 and event 1175 as broad USD strength is expected to persist.
Key Quotes
“Currently, XAU/USD has formed ascending triangle formation on the daily chart and wavers around the triangle support located at 1181.20. The pair failed to sustain at higher levels at 1185.31 and languishes near lows as the broad US dollar strength continues to dominate amid a data-light European session.”
“Meanwhile, traders prefer to hold the reserve currency following upbeat US macro data released yesterday and also ahead of the major US data flow due later in the session. Stronger greenback makes gold expensive for the holders of the yellow metal in foreign currency.”
“Further on the daily chart, RSI at 44 aims lower below the mid lines indicating further rooms for decline. The pair may also display an ascending triangle break out on the downside if the US dollar resumes its upward moves on the upcoming data releases.”
“To the downside, the pair may test the daily lows at 1180.58 and could extend decline to the next support at 1175 below a break of this last.”
“Trading volumes are expected to be thin as Europe remains closed on Labour Day, which may limit gains and losses in the pair.”
“To the upside, the pair faces stiff resistance at 50-DMA located at 1191.50 levels and beyond that it could test 5-DMA located around 1195 levels.”
“Overall, XAU/USD is poised for a break down and extend losses as broad USD strength is likely to persist.”
Key Quotes
“Currently, XAU/USD has formed ascending triangle formation on the daily chart and wavers around the triangle support located at 1181.20. The pair failed to sustain at higher levels at 1185.31 and languishes near lows as the broad US dollar strength continues to dominate amid a data-light European session.”
“Meanwhile, traders prefer to hold the reserve currency following upbeat US macro data released yesterday and also ahead of the major US data flow due later in the session. Stronger greenback makes gold expensive for the holders of the yellow metal in foreign currency.”
“Further on the daily chart, RSI at 44 aims lower below the mid lines indicating further rooms for decline. The pair may also display an ascending triangle break out on the downside if the US dollar resumes its upward moves on the upcoming data releases.”
“To the downside, the pair may test the daily lows at 1180.58 and could extend decline to the next support at 1175 below a break of this last.”
“Trading volumes are expected to be thin as Europe remains closed on Labour Day, which may limit gains and losses in the pair.”
“To the upside, the pair faces stiff resistance at 50-DMA located at 1191.50 levels and beyond that it could test 5-DMA located around 1195 levels.”
“Overall, XAU/USD is poised for a break down and extend losses as broad USD strength is likely to persist.”