Gold expected to head lower – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, notes technicals suggest that XAU/USD favours the downside, expecting the precious metal to test 1201.60 levels.

Key Quotes

“XAU/USD is expected to edge lower with limited EUR & US economic data on cards, US dollar moves are expected to dominate across the board.”

“To the upside, the pair may face strong resistance at 100-DMA levels located at 1212 levels. A break above that level, XAU bulls may storm their way to the next resistance at 1215 levels.”

“To the downside, the pair may fall from current levels and retest strong resistance at 50-DMA located at 1201.60 levels. A fresh XAU sell-off may trigger below that level, knocking off the pair to the immediate support at 20-DMA placed at 1193 levels. The daily RSI at 53 aims lower suggest more rooms for downside.”

“Overall, with the technical indicator favouring resumption of last week’s downtrend, XAU/USD may witness limited upside with US dollar strength likely to prevail.”