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20 May 2015
Gold might climb higher on a more than expected dovish FOMC Minutes – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, gives the technical outlook and key levels for XAU/USD into the FOMC Meeting Minutes release.
Key Quotes
“Currently, XAU/USD manages to fight back lost ground somewhat, recovering from lows of 1203.27 and trades near highs around 1210 levels. The upside in XAU/USD remains capped by a strong 100-DMA support-turned resistance located at 1212.50 levels.”
“While broad based USD strength also keeps a lid on the prices. The daily RSI at 54 has turned flattish suggesting lack of clear direction await ahead of the Fed minutes from its most recent meeting, due to be published later in the day.”
“Meanwhile, markets believe the document will read more dovish, with no conclusive hints provided on the timing of the rate-hike, which may provide some support to the gold bulls.”
“On the daily chart, the pair finds good support at 10-DMA located at 1205 levels. Hence, the pair may drop from current levels and retest 10-DMA. A break below the last the pair could drop further to test 20-DMA support placed at 1199 levels.”
“On the other hand, the pair could rise from current levels and retest 100-DMA resistance beyond a break of daily highs at 1210.78.”
“XAU/USD could climb further if the Fed minutes come out more dovish and breach 200-DMA support-turned resistance located at 1216. A break above the last, XAU bulls will take over driving the pair to 1224.66 (May 19 high) levels. Hence, the Fed minutes are likely to shape up further direction for the XAU/USD pair.”
Key Quotes
“Currently, XAU/USD manages to fight back lost ground somewhat, recovering from lows of 1203.27 and trades near highs around 1210 levels. The upside in XAU/USD remains capped by a strong 100-DMA support-turned resistance located at 1212.50 levels.”
“While broad based USD strength also keeps a lid on the prices. The daily RSI at 54 has turned flattish suggesting lack of clear direction await ahead of the Fed minutes from its most recent meeting, due to be published later in the day.”
“Meanwhile, markets believe the document will read more dovish, with no conclusive hints provided on the timing of the rate-hike, which may provide some support to the gold bulls.”
“On the daily chart, the pair finds good support at 10-DMA located at 1205 levels. Hence, the pair may drop from current levels and retest 10-DMA. A break below the last the pair could drop further to test 20-DMA support placed at 1199 levels.”
“On the other hand, the pair could rise from current levels and retest 100-DMA resistance beyond a break of daily highs at 1210.78.”
“XAU/USD could climb further if the Fed minutes come out more dovish and breach 200-DMA support-turned resistance located at 1216. A break above the last, XAU bulls will take over driving the pair to 1224.66 (May 19 high) levels. Hence, the Fed minutes are likely to shape up further direction for the XAU/USD pair.”