XAU/USD pair – Daily Charts
Gold prices in terms of US dollar (XAU/USD) bounced-off major trend line support of 1190 levels and ended higher on Tuesday at 1205, closing above 1200 mark on daily basis. Gold prices pulled away from daily lows and regained upside momentum as the US dollar weakened after Fed Chair Yellen paved the way for more flexibility around the timing of the bank's first rate hike in her testimony. The pair trades now at 1209.62, well supported above the 5-DMA located at 1205.72 levels. The pair is expected to remain supported on a weaker US dollar and is likely to test 100-DMA placed at 1216.30 levels. Moreover, the bearish RSI at 40.81 levels has turned higher indicating a potential upside in the day ahead. A break above 100-DMA, the pair may storm its way higher to test next resistance at 1223 levels. Meanwhile, traders now focus on Yellen’s testimony before the House later today further cues on the pair. In case of negative surprises from the testimony, the pair may fall and retest trend line support at 1192 levels, with a break below 5-DMA.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finished slightly higher on Tuesday at 1062.55 levels, closing above the 5-DMA located at 1061.53 levels, bouncing-off a brief dip below 50-DMA. At the moment, XAU/EUR trades higher at 1064.83 levels, supported above 5-DMA, having failed yet another to break above 10-DMA located at 1067 levels. The pair seems to be trading in a very tight range, stuck between 10-DMA (1067) and 50-DMA (1058). To the upside, the pair may retest 10-DMA and beyond that XAU bulls may take total control pushing the pair higher to next upside barrier at 1075 levels. The daily RSI at 46 levels, is inching higher towards the bullish territory suggests an upside bias to remain. A failure to breach 10--DMA, the pair is expected to rebound and drop to retest 50-DMA levels and below that retest previous lows at 1052 levels. Overall, a general intraday upside bias is likely to persist until 50-DMA is breached.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) extended gains and closed higher on Monday at 143,237 levels, rebounding from day’s low posted at 141,983 levels. The pair now trades higher at 143,397 levels above 5-DMA located at 143,301. The pair seems to have formed a doji candle on the daily chart suggesting lack of clear direction. A bearish RSI at 37.45 further has turned slightly higher. However, the RSI still remains in a bearish zone with more room for downside. To the downside, the pair may retest 142k levels below daily lows at 142,988 levels. Upside seems restricted as the pair faces strong resistance at 10-DMA at 144,213 levels. An overall intraday downside bias holds as yen is expected to hold gains versus the US dollar, dragging XAU/JPY lower.
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