7 May 2015
Gold might drop to $1179 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, views that XAU/USD technicals suggest the pair is turning further bearish and might drop to the trend line support at 1179 levels.
Key Quotes
“Currently, XAU/USD remains in red near daily lows breaking past the 5-DMA support located at 1187 levels. The pair remains weak despite muted USD and rising US treasury yields continue to dampen gold’s attractiveness as a higher yielding asset.”
“On daily chart, the RSI at 45 aims lower indicating further bearishness ahead and the pair may drop to the formation trend line support at 1179 levels. If the pair gives a break out on the downside, selling pressure may intensify dragging the pair lower to 1168.93 (May 1 Low) levels.”
“To the upside, the pair faces strong resistance formed by moving average crossovers around 1187-1191 band. Hence, upbeat momentum may be confirmed only above a break of 1191 levels.”
Key Quotes
“Currently, XAU/USD remains in red near daily lows breaking past the 5-DMA support located at 1187 levels. The pair remains weak despite muted USD and rising US treasury yields continue to dampen gold’s attractiveness as a higher yielding asset.”
“On daily chart, the RSI at 45 aims lower indicating further bearishness ahead and the pair may drop to the formation trend line support at 1179 levels. If the pair gives a break out on the downside, selling pressure may intensify dragging the pair lower to 1168.93 (May 1 Low) levels.”
“To the upside, the pair faces strong resistance formed by moving average crossovers around 1187-1191 band. Hence, upbeat momentum may be confirmed only above a break of 1191 levels.”