Gold Analysis: XAU/EUR stuck in range between 10-DMA and 20-DMA

XAU/USD pair – Daily Chart

Gold prices in terms of US dollar (XAU/USD) ended Monday on a negative note at 1196.01 levels, clinging to the 50-DMA crucial support located at 1196.01, bouncing-off a brief dip to 1190.70 lows below that level. The XAU/USD pair retreated from daily highs at 1209.15 and edge lower as the US dollar resumed its upside momentum against its major competitors for the third straight session, knocking-off the pair below 1200 levels.

Currently, XAU/USD trades near highs around 1197 levels, facing rejection at trend line support-turned resistance at 1197.46. The pair seems to consolidate below the trend line, having witnessed a trend line break down today. The daily RSI at 50 remains flat and suggests a wait and watch mode amid yet another data-dry EUR and USD session with the US dollar likely to remain the major driver. The pair is expected to retest of 50-DMA at 1195.27 and below that a likely test of previous low at 1190.70 is seen. XAU bears may take over thereon knocking the pair to 1182.84 (April 14 Low) levels. The upside seems limited as the pair faces strong resistance at 1200 beyond a break of 1197.46 levels. More so, the US dollar is expected to remain strongly bid across the board, rebounding from a crucial support last week, which may keep the pair pressured.

XAU/EUR pair – Daily Chart

Gold prices in terms of Euro (XAU/EUR) finished modestly flat on Monday at 1112.77, clinging to the 20-DMA support located at 1111.84 and bouncing-off 10-DMA resistance at 1121.40 levels. The pair climbed to highs 1121.40 during the European session as the shared currency tumbled to lows closer to 1.07 handle versus the USD. However, the pair bounced-off highs and declined gradually as the euro managed to recover lost ground during the US session, pushing XAU/EUR to lows around 1107 levels before settling the day almost unchanged.

Currently, the pair trades elevated around 1115.40 levels, with XAU/EUR capped by 5-DMA located at 1116.87 levels. The pair seems to have taken good support at the 20-DMA located at 1112.96, quickly pulling back from a brief dip below that level. However, the daily RSI at 53.60 aims higher indicating further room for upside. The bullish momentum is likely to be confirmed on a break above 5-DMA resistance located at 1116.87, beyond which the pair may test the channel trend line support-turned resistance at 1117.85. A break above the lasts, XAU bulls may storm their way for a retest of 10-DMA located at 1121.16 levels. However, with expectations of upbeat ZEW data release, the shared currency may receive some support, restricting further upside. Overall, the pair is expected to keep the range between 10-DMA and 20-DMA so long as the 20-DMA support holds.

XAU/JPY pair – Daily Chart

Gold prices in terms of Japanese yen (XAU/JPY) ended lower on Monday at 142,571 levels, well supported above 142k levels as broad yen weakness help the XAU/JPY pair. However, the upside in the pair was capped by 20-DMA located at 143,448 levels as the USD/JPY also faced strong resistance at 119.50 levels. The pair edged lower as the yen regained strength during the US session, dragging XAU/JPY back on 142k handle.

XAU/JPY currently is seen higher at 142,976 levels, having posted highs above 143k handle. The pair failed to hold above 143k barrier and fell back on the 5-DMA support located at 142,945 levels. The RSI at 48 has turned higher indicating upside in the making and a retest of 50-DMA resistance at 143,160 levels beyond a break of daily highs. XAU bulls may take complete control and charge their way to 143,500 levels, where 20-DMA and trend line resistance coincide. The downside seems limited and the pair may test 142k handle. Overall, yen weakness is likely to extend in the session ahead, supporting XAU/JPY.