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19 May 2015
Gold likely to drop further – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees further losses possible for XAU/USD towards 1212 on a break below the 200 DMA support at 1216.40.
Key Quotes
“Currently, XAU/USD halted its upward trajectory and dropped sharply from 1224.60 high, breaching the 5-DMA support located at 1220 levels and trades near lows of 1217.25.”
“The pair gave back previous gains and dived deep in red largely on profit-taking as traders sought to lock-in gains after the recent upsurge. While the greenback resumes its recovery path from three month lows against its major peers. The daily RSI at 58 has turned lower suggesting the pair could drop further.”
“At the moment, the pair finds good support at 200-DMA located at 1216.40. A breach of the last, the pair may accelerate losses to 1212 levels where the 100-DMA lies.”
“To the upside, the pair may retest 5-DMA support-turned resistance at 1220 levels and beyond that may extend to 1227 – next resistance.”
“Overall, XAU/USD is likely to remain supported so long as it breaches 200-DMA support as US housing data due later in the NA session may throw fresh light on further USD moves.”
Key Quotes
“Currently, XAU/USD halted its upward trajectory and dropped sharply from 1224.60 high, breaching the 5-DMA support located at 1220 levels and trades near lows of 1217.25.”
“The pair gave back previous gains and dived deep in red largely on profit-taking as traders sought to lock-in gains after the recent upsurge. While the greenback resumes its recovery path from three month lows against its major peers. The daily RSI at 58 has turned lower suggesting the pair could drop further.”
“At the moment, the pair finds good support at 200-DMA located at 1216.40. A breach of the last, the pair may accelerate losses to 1212 levels where the 100-DMA lies.”
“To the upside, the pair may retest 5-DMA support-turned resistance at 1220 levels and beyond that may extend to 1227 – next resistance.”
“Overall, XAU/USD is likely to remain supported so long as it breaches 200-DMA support as US housing data due later in the NA session may throw fresh light on further USD moves.”