XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended the week on an upbeat note, reaching fresh two week high at 1187.96 levels, before settling on Friday at 1182.38 levels. XAU/USD gave a symmetrical triangle formation break out on daily chart and surpassed major 20-DMA resistance located at 1182.46 levels. XAU/USD rallied on Friday after the US dollar resumed its FOMC backed slide boosting the demand for gold as it makes it less expensive for holders in other currencies.
The pair, currently, trades higher at 1182.77 levels, supported above 20-DMA located at 1181.44 levels. XAU/USD bounced-off lows below 20-DMA around 1181 levels and climbed higher as the US dollar recovery from the previous slump lost momentum and the greenback trades muted across the board. The pair is seen struggling around 1183, and is attempting another bounce to break above the daily highs at 1186.81. However, with the daily RSI turned flattish at 46.53 levels, the pair seems to lack clear direction amid a data light day ahead. XAU bulls may takeover beyond a break of daily highs and head higher towards 1200 mark. To the downside, a break below 20-DMA support, losses may accelerate pushing the pair to test the next support at 5-DMA and trend line support at 1171.10 levels. Overall, the pair may consolidate previous gains and remain underpinned so long as the crucial 20-DMA support is breached.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) advanced to 1099.26 levels before ending lower on Friday at 1091.70 levels. The pair managed to close the week above the 50-DMA located at 1091 levels, having bounced –off the 1100 barrier. The XAU/EUR pair initially edged higher on a broadly weaker Euro and attempted another run towards 1100 mark. However, EUR bulls took over later in the day and dragged the XAU/EUR lower towards 50-DMA as the EUR/USD witnessed a solid recovery back on the 1.08 handle on a massive US dollar sell-off.
Currently, the pair trades higher around 1093.30 levels, as the XAU bulls seems to have jumped-backed in to the bid and keep the pair well supported above a major support at 1092 levels, where the 10-DMA and 50-DMA converge. The pair remains capped by 1100 upside barrier as the Euro is likely to remain supported versus the USD as the greenback continues to remain pressured on the dovish FOMC statement. The bullish daily RSI at 53.65 levels turned slightly higher suggest further room for upside. To the upside, the pair is expected to retest daily highs at 1097.78 levels and beyond that may test 1100 – psychological levels. A break above 1100 mark is likely to take the pair higher to retest previous highs at 1104 levels. To the downside, the pair may fall from current levels and retest 50-DMA levels and below that may test immediate support at 5-DMA at 1089.80 levels. Overall, a generalized intraday upside bias persists so long as it holds above 50-DMA located at 1092 levels.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) ended slightly higher on Friday at 141,798 levels, after retreating from highs reached at 142,853 levels beyond a break of crucial 20-DMA resistance located at 142,225. The gold prices in terms of yen traded higher on Friday all through the day, as the yen underperformed the US dollar, taking the pair higher. However, the partial gains were erased in XAU/JPY during the last North American session after the US dollar lost its upside momentum and fell across the board pushing the yen higher.
The pair now trades at 141,719 levels, bouncing off day’s high at 142,419 levels. The daily RSI at 35.65 levels has ticked slightly lower indicating a bearish downside bias. To the upside, the pair faces stiff barrier at previous highs around 142,850 levels and beyond that level the pair may retest 143k levels. In case, of a breach of daily lows at 141,679 levels, XAU bears may take over dragging the pair lower to retest 141k levels. Overall, XAU/JPY is expected to edge lower towards 141k levels as the yen is likely to hold gains versus the US dollar and may test 50-DMA levels located at 119.38 levels.
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