XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended near highs on Monday around 1190 levels, reaching fresh three week high at 1191.56 levels. XAU/USD extended its bullish tone from the previous session; having displayed a symmetrical triangle formation break out on daily chart. XAU/USD remained well supported above 20-DMA located at 1181.73 levels, bouncing-off a brief dip below that level and rebounding higher to reach daily highs. Broad based US dollar weakness on the back of weaker US existing home sales data boosted the rally in XAU/USD.
The pair, currently, trades near lows at 1185.73 levels, bouncing-off day’s high at 1190 levels as the US dollar regained lost ground and climbed higher across the board, dragging XAU/USD lower. The pair is seen struggling around 1185, and is expected to fall from current levels and may test the crucial support at 1181 levels where the 20-DMA and trend line support converge. Also, the daily RSI has turned lower at 48.16 levels suggesting a likely test of 1181 levels. A fresh demand for XAU may be witnessed at 1181 levels which may lift the pair higher to retest daily highs and beyond that level XAU bulls may storm its way through the 1200 mark. However, in case of a breach of 1181 levels, selling pressure is likely to intensify, pushing the pair to test the next support at 1170 levels. Overall, the pair remains underpinned on USD weakness ahead of the key US CPI data and 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 1098.11 levels before ending lower on Monday at 1086.90 levels. The pair ended the day below the 50-DMA located at 1091.98 levels, having failed yet another attempt to breach 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 amid a broadly weaker US dollar and dragged the XAU/EUR lower towards 20-DMA located at 1083 levels as the EUR/USD witnessed a solid recovery towards 1.09 handle after optimistic speech by ECB chief Draghi bolstered the shared currency.
Currently, the pair trades subdued near lows around 1085.72 levels, clinging on to the 20-DMA support located at 1085 levels. The pair continues to trade in a slim range locked between 1085-1087.81 levels, with the upside capped by 5-DMA located at 1088 levels. Though slight EUR/USD weakness supports XAU/USD at the moment, the upside is likely to be limited as the pair has formed a bearish flag pattern on the daily chart suggesting further downside potential. Moreover, the daily RSI stands flattish at 50 levels pointing clear indecisive and XAU bear may dominate below the break of 20—DMA and trend line support. To the downside, the pair is likely to test previous lows at 1076 (March 19 Low). To the upside, the pair may climb from current levels and retest 5-DMA. However, the pair is expected to face strong upside barrier at 50-DMA located at 1092.77 levels. Overall, a generalized intraday downtrend persists until 50-DMA is breached.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) ended higher on Monday at 142,458 levels, after retreating from highs reached at 142,777 levels. The pair settled the day well above the crucial 20-DMA resistance located at 142,194. The gold prices in terms of yen traded higher on Monday all through the day, as the yen underperformed the US dollar, taking the pair higher. However, the previous gains were erased in XAU/JPY during the North American session after the US dollar weakened on downbeat existing home sales data versus the yen, weighing on XAU/JPY lower.
The pair now trades at 141,974 levels, bouncing off day’s high beyond 20-DMA at 142,528 levels. The daily RSI at 35.65 levels has turned lower indicating further room for declines. To the upside, the pair faces stiff barrier at 20-DMA located at 142,130 levels and beyond that level the pair may retest daily highs. In case, of a breach of daily lows at 141,891 levels, XAU bears may take over dragging the pair lower to test 5-DMA support located at 141,684 levels and further to 141k levels. Overall, XAU/JPY is expected to edge lower towards 141k levels as the yen is likely to outperform the greenback as expectations of a poor US CPI print is drag the USD bulls lower across the board.
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