XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended lower on Tuesday at 1183.68 levels, bouncing off a good support at 20-DMA located at 1177.69. The pair extended its losses in to the third straight session largely on persistent US dollar strength across the board following recent series of upbeat US macro data including the latest better than forecasts US consumer confidence figures. Besides, a generalized risk-on mood prevailed in the markets yesterday which dulled the appeal of gold as a safe-haven.
The pair, currently trades higher around 1187 levels, snapping its 3-day run of declines. However, the upside remains capped by 10-DMA barrier at 1189 levels. The pair seems to consolidate previous losses and has edged higher given the broad USD weakness on profit-taking following the recent upsurge. The daily RSI at 47.98 heads higher towards the bullish terrain suggests further extension of the recovery mode. A break above the 10-DMA resistance, the pair may extend to 5-DMA located at 1191.70 levels. A breach of 5-DMA coupled with a daily closing above that level is expected to confirm a bullish momentum in XAU/USD. To the downside, XAU/USD may fall from current levels and test daily lows at 1183.70. A fresh sell-off may trigger below a break of 1183.70 which may drag lower for a retest of 20-DMA support located at 1176.62.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) extended its sideways movement in a short term upside channel and ended higher on Tuesday at 1102.07 levels, well above 1100 – psychological barrier. The pair advanced to highs at 1107.94, however failed to breach March 27 Highs at 1110.65 levels and bounced-off that level to end just ahead of 1100 mark. XAU/EUR regained lost ground and remained elevated all through the day largely on a massive sell-off seen in EUR/USD as the US dollar continued to extend its bullish tone.
Currently, the pair trades lifted at 1102.20 levels, having bounced-off day’s high at 1103.82 levels. The pair continues to trade in a bearish flag channel and bounces-off every dip on the trend line support. XAU/EUR seems supported on 5-DMA located at 1100.93 levels and has formed a doji on the daily chart along with a flattish RSI at 56 levels indicating lack of clear direction for the pair ahead of a raft of Eurozone PMI and UK PMI readings which may a set a clear tone for XAU/EUR. To the upside, the pair may retest previous high at 1107.94 as the weakness in EUR is expected to support the XAU/EUR. A break above that level, XAU bulls may take over, leading the pair to test March 27 highs at 1110.65 levels. To the downside, the pair may fall from current levels and test 5-DMA support below which selling pressure is likely to intensify dragging the pair to test the trend line support at 1093.85.
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