XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) gave a false symmetrical breakout in the previous session as the pair gave back gains and ended lower on Monday at 1204.65 levels. The pair bounced-off 10-DMA located at 1224.43 levels and fell to levels just ahead of USD 1200 after USD bulls jumped back into bids on better than expected US Markit’s manufacturing PMI and consumer spending data. A string of upbeat US macro sparked rate-hike bids, boosting the greenback and hence dragging XAU/USD lower.
Currently, the pair trades higher at 1209.86 levels, having bounce-off daily lows at 1195.40 as USD bulls took a breather from its recent rally. At the moment, the pair remains well supported above 10-DMA located at 1207.70 levels. The pair may inch higher and test 100-DMA placed at 1215.54 levels above a break of daily highs of 1211 as a broadly weaker US dollar on a profit booking sell-off may buoy gold prices. Moreover, daily RSI has ticked higher indicating a likely chance of further upside. However, the upside may remain capped by 100-DMA as the greenback may rebound from lower levels and weigh on the pair, pushing it to retest 1200 levels and below that 1190 levels. Overall, the pair is likely to remain supported above crucial 1200 levels in absence of significant US data later in the day.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finished on Monday at 1079.88 levels, clinging on to 10-DMA located at 1079.50 levels, rebounding from a brief dip below that level. XAU/EUR remained supported above the 10-DMA, although moved away from three-week highs mainly driven by a higher EUR/USD after upbeat Euro zone economies PMI readings and EMU CPI data kept the shared currency buoyed, despite the strengthening US dollar.
Currently, the pair trades almost unchanged at 1079.50 levels, forming a doji on the daily chart indicating a lack of clear direction as markets now focus on German retail sales numbers which are expected to come in slightly stronger than the previous reading. The bullish RSI standing at 51.43 levels in the bullish zone also suggests indecisiveness. However, the pair remains supported above the crucial 50-DMA located at 1066.78 levels. To the upside, the pair may retest daily highs at 1082.04 levels and beyond that may retest previous highs at 1094 levels. In case of a break below 20-DMA, a fresh sell-off may trigger dragging the pair to retest 50-DMA support zone.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) closed higher on Monday at 145,094 levels, having briefly spiked above crucial 50-DMA located at 146,291 levels as a weaker yen continued to boost XAU/JPY. The pair now trades lower at 144,626 levels, bouncing-off 20-DMA located at 145,353 levels as a sharp rebound in the yen versus the US dollar on solid Japanese wages growth data dragged XAU/JPY lower. The pair fell back below 144k levels post the upbeat Japanese data, however held firmly above the trend line support of 142,879 levels. The daily RSI at 44.79 has inched lower in the bearish territory indicting more room for downside. Hence the pair may fall from current levels and retest 144k levels. Moreover, selling pressure may intensify and drown the pair to test the trend line support below 144k. Overall, a generalized intraday downtrend may persist until the 20-DMA is breached.
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