Gold Analysis: XAU/EUR could rise to 1130

XAU/USD pair – Daily Chart

Gold prices in terms of US dollar (XAU/USD) ended Tuesday on a positive note at 1201.82levels, holding above the key 1200 levels largely on a broadly softer US dollar as traders booked profits on their USD longs after the recent two back-back session of gains. XAU/USD bounced-off the critical trend line support at 1192.40 levels and rallied to 1204.33 highs as looming Greece concerns also supported the yellow metal.

Currently, XAU/USD trades near highs around 1202 levels, holding above 5-DMA and 10-DMA crossovers circa 1200 levels. The pair finds good support at 50-DMA and trend line support confluence at 1195 levels. However, with the US dollar extending its corrective slide, XAU/USD is expected to remain supported amid a data light session for the third day in a row. Later in the New York session, US existing home sales numbers may provide fresh take on the USD moves which may have major impact on XAU/USD. The daily RSI in the bull range at 52 has turned flattish indicating no clear direction at the moment. Hence, to the upside, the pair may head for a likely retest of previous highs at 1204.33 and beyond that may test a strong resistance zone formed around 1209 levels. XAU bulls may storm their way through the lasts and may touch 100-DMA resistance at 1212.33. The downside seems limited so long as the pair holds above key support at 1195 levels.

XAU/EUR pair – Daily Chart

Gold prices in terms of Euro (XAU/EUR) advanced beyond 10-DMA support located at 1121.50 and reached daily highs at 1123.61. The pair eased off highs and closing higher on Tuesday at 1119.20, remaining below 10-DMA. XAU/EUR remained elevated all though the day as the shared currency weakened versus the US dollar. However, the shared currency regained lost ground and edged higher during the US session, dragging the pair session lows near 1112 levels. Finally, the pair recovered to give a positive close on the day.

Currently, the pair trades elevated around 1120 levels, clinging to the channel support at 1119.56 levels. The XAU/EUR pair remains capped by 10-DMA located at 1122 levels and finds good support at the 5-DMA located at 1115.87 levels. However, the daily RSI at 56 is flat suggesting a likelihood of a break on either side. Hence, further upside for the pair is likely to be confirmed on a break above 10-DMA resistance located at 1122. In case of a failure to break above the lasts, the pair may rebound and fall back on the 5-DMA below a break of daily lows at 1117.05. However, with limited macro data lined up for the day, the pair may take cues from further dollar moves and developments surrounding Greece. Overall, the pair is expected to keep the range between 10-DMA and 20-DMA located at 1115 levels so long as the 20-DMA support holds.

XAU/JPY pair – Daily Chart

Gold prices in terms of Japanese yen (XAU/JPY) ended higher on Tuesday at 143,800 levels, failing to sustain above 144k levels as the yen regained strength versus the US dollar during the last session dragging the pair off highs. The pair jumped to fresh three-day highs at 144,071 largely on broad yen weakness during the European session as the greenback extending its upsurge.

XAU/JPY currently is seen higher at 143,833 levels, having posted highs at 143,902 handle. The pair faces strong resistance at 144k levels and fails to surpass that level on several occasions. The RSI at 53 has turned flat indecisiveness between the bulls and bears. To the downside, the pair finds strong support at 20-DMA located at 143,553 levels and below that may retest 50-DMA placed at 143,120 levels. To the upside, the bullish momentum can be confirmed on a sustained break above 144200 levels which may take the pair higher to test 100-DMA located at 144,600 levels. Overall, XAU/JPY may remain supported as the USD bulls may jump back into bids on the release of US housing data later in session, pushing the yen lower.