26 May 2015
Gold sees downside potential – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees bearish potential for XAU/USD towards 1182.20 on a fresh sell-off below 1191.26.
Key Quotes
“XAU/USD finally breached the crucial 1200 support today and now trades near lows around 1195 levels. The pair fell to fresh two-week lows in the early European trades and extends declines below 50-DMA support located at 1197.70 levels mainly driven by fresh USD buying as European traders returned to their desk after an extended holiday.”
“In the day ahead, markets eagerly await US durable goods orders data which is expected to boost USD bulls further.”
“The daily RSI at 46.70 aims sharply lower and has crossed the midlines in to the bear range, indicating more room for declines. Moreover, the pair now stands below all the major moving averages. Hence, to the downside, XAU/USD may extend to the next support at 1191.26 (May 13 low) levels, below which a fresh sell-off is likely to trigger drowning the pair to the channel trend line support of 1182.20 levels.”
“In case the US data misses expectations, we could see a minor recovery in gold prices back around 1200 levels.”
Key Quotes
“XAU/USD finally breached the crucial 1200 support today and now trades near lows around 1195 levels. The pair fell to fresh two-week lows in the early European trades and extends declines below 50-DMA support located at 1197.70 levels mainly driven by fresh USD buying as European traders returned to their desk after an extended holiday.”
“In the day ahead, markets eagerly await US durable goods orders data which is expected to boost USD bulls further.”
“The daily RSI at 46.70 aims sharply lower and has crossed the midlines in to the bear range, indicating more room for declines. Moreover, the pair now stands below all the major moving averages. Hence, to the downside, XAU/USD may extend to the next support at 1191.26 (May 13 low) levels, below which a fresh sell-off is likely to trigger drowning the pair to the channel trend line support of 1182.20 levels.”
“In case the US data misses expectations, we could see a minor recovery in gold prices back around 1200 levels.”