FXStreet Editor and Analyst, Dhwani Mehta, retains her bearish outlook for XAU/USD, expecting USD bulls to lead the pair to test its daily lows.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave away previous gains and ended lower on Wednesday at 1284.82 levels, as the US dollar regained strength after the FOMC statement revealed that Fed remains on track to hike interest rate this year.”
“Currently, the pair is seen trading subdued at 1282 levels, swinging between gains and losses as the US dollar took a breather in its rally.”
“On the daily chart, the pair seems to have bounce-off from day’s lows of 1278.11 and now trades at 1283 levels. The pair is likely to test 1287 levels where the 5-DMA and 10-DMA converge. A break above the moving averages may push the pair higher to test previous highs at 1293.63 levels.”
“However, the XAU bulls may find it difficult to break through 1287 levels as the RSI has inched lower at 62.80 levels. The bears may take control and drag the pair lower to retest daily lows. A break below 1278 levels, the pair is likely to drop to the next support located at 1272 levels.”
“Overall, the outlook remains slight bearish as USD bulls are likely to hold the front seat today.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave away previous gains and ended lower on Wednesday at 1284.82 levels, as the US dollar regained strength after the FOMC statement revealed that Fed remains on track to hike interest rate this year.”
“Currently, the pair is seen trading subdued at 1282 levels, swinging between gains and losses as the US dollar took a breather in its rally.”
“On the daily chart, the pair seems to have bounce-off from day’s lows of 1278.11 and now trades at 1283 levels. The pair is likely to test 1287 levels where the 5-DMA and 10-DMA converge. A break above the moving averages may push the pair higher to test previous highs at 1293.63 levels.”
“However, the XAU bulls may find it difficult to break through 1287 levels as the RSI has inched lower at 62.80 levels. The bears may take control and drag the pair lower to retest daily lows. A break below 1278 levels, the pair is likely to drop to the next support located at 1272 levels.”
“Overall, the outlook remains slight bearish as USD bulls are likely to hold the front seat today.”
