XAU/USD pair – Daily Charts
Gold prices in terms of US dollar (XAU/USD) ended modestly flat on Wednesday at 1205.64, holding firmly above USD 1200 levels. Gold prices failed an attempt to test 10-DMA located at 1213.24 levels and bounced-off highs at 1211.80 levels and fell back to finish almost unchanged as the US dollar regained some lost strength after Fed Chair Yellen stuck to its patient theme in the second round of her testimony last night. The pair trades now at 1209.49, hovering close to day’s high and attempting another run to test 10-DMA located at 1211.82 levels. The pair could test 100-DMA placed at 1216.12 levels beyond 10-DMA as a doji formed in the previous session and RSI (40.87) headed upwards, strongly indicate a likely test on the upside. A failure to breach 10-DMA levels, the pair may rebound and fall back to test 5-DMA support located at 1205 levels. A break below that level, may open doors further down, once again testing trend line support at 1200 levels. The pair is likely to remain elevated ahead of major US economic releases later in the day.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finished slightly lower on Wednesday at 1060.90 levels, forming a doji on the daily chart with the upside capped by the 10-DMA located at 1067 levels. At the moment, XAU/EUR trades higher at 1062.97 levels, extending its accumulation phase, locked between 10-DMA (1066) and 50-DMA (1059.70). The pair seems to be stuck in a tight range mirroring the side trend seen in the EUR/USD pair which is also stuck between 1.1300-1.1400 levels. The pair seems to be searching for a clear direction and a break on the upside is more likely so long as the 50-DMA holds. A flattish daily RSI standing at 45.31 reinforces a lack of clear direction ahead of crucial German CPI data due tomorrow. To the upside, the pair may retest 10-DMA and beyond that XAU bulls may take total control pushing the pair higher to next upside barrier at 1075 levels. A failure to breach 10--DMA, the pair is expected to rebound and drop to retest 50-DMA levels and below that retest previous lows at 1052 levels. Overall, a general intraday upside bias is likely to persist until 50-DMA is breached.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) remained elevated, although closed flat on Wednesday at 143,258 levels, bouncing off a brief spike ahead of 144k levels. The pair now trades higher at 143,755 levels and has given a clear channel breakout with the daily RSI at 39.68 seen rebounding from the oversold territory. The pair remains supported above 5-DMA located at 143,262. However, the upside remains restricted as the pair fails to sustain above 10-DMA at 144k levels. XAU bulls may storm their way higher to test 145,400 (Feb 19 High) levels beyond 144k levels. To the downside, the pair may to previous lows at 142,800 levels below 5-DMA. A strong intraday upside bias holds above a break of 144k levels as the yen trades cautious ahead of a host of US macro data due for release later in the day.
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