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11 Mar 2015
Gold might witness a mild rebound before turning lower – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, notes that technicals suggest XAU/USD might witness a mild bounce towards 1165.20 before diving lower towards 1160.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) extended its downside bias and closed lower on Tuesday at 1163.90 levels, recovering from fresh three month lows reached at 1155 levels. Gold prices gave back initial gains and slumped to three month lows as the US dollar remained firmly bid across the board, climbing to fresh twelve year peak at 98.66 levels.”
“The pair, currently, trades near lows at 1162.60 levels, supported above 1160 levels largely as the USD bulls extends its bullish momentum on increased probabilities of a June rate-hike on the table now.”
“The US dollar index extends towards 99 barrier, now trading at 98.83 levels.”
“The daily RSI at 25.80 levels stands in an extremely oversold zone, although has turned mildly flattish, points to a mild rebound before retesting previous lows.”
“To the upside, the pair may retest daily highs at 1165.20 and beyond that may climb further to test 5-DMA located at 1172.45 levels.”
“However, given the persistent strength in the greenback, the pair may bounce-off highs at 1165.20 levels and fall further to test 1160 levels. A break below that level, selling pressure may intensify dragging the pair to retest previous low at 1155 levels.”
“The pair could fall to 1146 levels as XAU bears are likely to take over below a break of 1155 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) extended its downside bias and closed lower on Tuesday at 1163.90 levels, recovering from fresh three month lows reached at 1155 levels. Gold prices gave back initial gains and slumped to three month lows as the US dollar remained firmly bid across the board, climbing to fresh twelve year peak at 98.66 levels.”
“The pair, currently, trades near lows at 1162.60 levels, supported above 1160 levels largely as the USD bulls extends its bullish momentum on increased probabilities of a June rate-hike on the table now.”
“The US dollar index extends towards 99 barrier, now trading at 98.83 levels.”
“The daily RSI at 25.80 levels stands in an extremely oversold zone, although has turned mildly flattish, points to a mild rebound before retesting previous lows.”
“To the upside, the pair may retest daily highs at 1165.20 and beyond that may climb further to test 5-DMA located at 1172.45 levels.”
“However, given the persistent strength in the greenback, the pair may bounce-off highs at 1165.20 levels and fall further to test 1160 levels. A break below that level, selling pressure may intensify dragging the pair to retest previous low at 1155 levels.”
“The pair could fall to 1146 levels as XAU bears are likely to take over below a break of 1155 levels.”