According to FXStreet Editor and Analyst, Dhwani Mehta, XAU/USD is likely to break lower to retest 1228.64 levels, but a failure to break the support might lead the pair to rebound higher.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) fell sharply on Friday and ended last week lower at 1233.78 levels, after better than forecasts US Nonfarm payrolls figures boosted the US dollar. The pair bounced-off 50-DMA on Friday.”
“The pair seems to struggle around 1236-1237 levels on the hourly chart, as the upside remains capped by the hourly 5-DMA located at 1237.80 levels.”
“The pair is likely to break below support of hourly 10-DMA as the hourly bearish RSI at 31.54 has turned even lower.”
“To the downside, the pair may retest daily 50-DMA (1228.64). In a yet another failed attempt to breach that level, the pair is expected to rebound to test hourly 20-DMA at 1242.50 levels.”
“Overall, the pair is likely to trade downside pressured by increasing odds of an earlier US interest rate hike which may support the USD.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) fell sharply on Friday and ended last week lower at 1233.78 levels, after better than forecasts US Nonfarm payrolls figures boosted the US dollar. The pair bounced-off 50-DMA on Friday.”
“The pair seems to struggle around 1236-1237 levels on the hourly chart, as the upside remains capped by the hourly 5-DMA located at 1237.80 levels.”
“The pair is likely to break below support of hourly 10-DMA as the hourly bearish RSI at 31.54 has turned even lower.”
“To the downside, the pair may retest daily 50-DMA (1228.64). In a yet another failed attempt to breach that level, the pair is expected to rebound to test hourly 20-DMA at 1242.50 levels.”
“Overall, the pair is likely to trade downside pressured by increasing odds of an earlier US interest rate hike which may support the USD.”
