XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) fell to fresh two week lows at 1182.84 on Tuesday as anticipated before recovering partial losses and settling the day at 1193.90. The pair lost ground yesterday and dropped from 1201.49 highs seen in early trades and remained weak throughout the day. However, the pair managed to regain some strength and spiked higher to 1199 levels after US retail sales data missed estimates which halted the USD rally.
Currently, XAU/USD trades near lows around 1191 levels with the upside capped by 20-DMA located at 1196 levels. The pair remains well below the trend line support –turned resistance located at 1200 levels which indicates continuation of previous downtrend. XAU bears continue to dominate in today’s trade, eyeing fresh two-week lows near 1180 levels. The pair extends losses largely on the back of a renewed bid wave caught by the US dollar paring previous US data backed losses. On the daily chart, the RSI at 47.50 lies in bearish territory and suggests more downside momentum. The pair is expected to drop further from current levels and retest daily lows at 1190.75. Below that level, selling pressure may intensify dragging XAU/USD lower for a retest of two week lows at 1182.40 (April 14 Low). The upside seems limited and the pair may remain capped by key 1200 –psychological levels. Overall, a generalized intraday downtrend persists so long as the pair remains below 20-DMA.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) ended lower on Tuesday at 1121.41, snapping its long run of gains and failed to breach the channel trend line resistance located at 1140.16 levels. The pair gave back previous gains and fell in red after weak US macro data pushed the EUR/USD pair higher. However, the pair managed to recover from lows at 1115.79 and closed above 20-DMA located at 1118.72 levels.
Currently, the pair trades at 1122.22 levels, in a slim range consolidating previous losses. XAU/EUR remains stuck between 5-DMA resistance at 1127.10 and downside cushioned by 10-DMA located at 1118.17 levels. The daily RSI at 57.75 has turned flattish and a doji candle formed on daily chart indicates lack of clear direction for XAU. However, with the shared currency likely to remain subdued ahead of ECB meeting later in the session, XAU/EUR is expected to remain supported on broad euro weakness. To the upside, the pair may retest daily highs at 1124.40 beyond which the pair may test 5-DMA resistance at 1127.10 levels To the downside, XAU bears may take over below a break of 10-DMA drowning the pair to the channel trend line support at 1111 levels. Overall, the pair is expected to remain lifted until it breaches 10-DMA support.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) dropped sharply on Tuesday and settled the day at 142,607 levels, after falling to lows near the trend line support at 141,674 levels as anticipated. The pair dropped for the second straight session as the yen rose to fresh two week highs versus the US dollar testing 119 barrier on weak US macro data which exacerbated the fall in the US dollar across the board.
The pair snapped its decline and edged higher largely on profit-taking after the recent sell-off, lifting the pair near 142,700 levels. Moreover, weak China data dragged the yen lower across the board boosting XAU bulls and pushing the pair higher towards 143k. However, the pair failed to sustain at higher levels as markets remain in a wait and see mode ahead of key ECB policy announcement. The daily RSI at 46 stands flat indicating that markets await fresh incentives in the session ahead. To the downside, the pair may retest daily lows and below that further extend losses till 142k barrier. Selling pressure is expected to intensify below the 142k threshold, dragging the pair lower to retest trend line support at 141,600 levels. The upside seems limited and may remain capped by the 20-DMA resistance at 143,300 levels. Overall, XAU/JPY is expected to recover as the yen may remain weak in the day ahead, driving the pair higher.
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