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FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees further recovery potential for XAU/USD towards 1189.22 and even 1192.14.
Key Quotes
“The pair seems to extend its recovery amid a data-thin day ahead with the US dollar continued to be undermined by weak US macro data releases including the latest durable goods orders.”
“On daily chart, the pair trades in a short-term downtrend channel and could extend its recovery to 1189.22 levels where the XAU bulls face stiff resistance of 5-DMA. A break above the last, pair may head towards a test of next resistance at 50-DMA located at 1192.14 levels.”
“However, the upside is expected to be limited as markets remain cautious ahead of FOMC statement due on Wednesday. In the same chart, the RSI at 43.50 in the bear range aims higher supporting the recovery in XAU/USD.”
“To the downside, if the daily low at 1178.50 fails to hold, the pair could drop to retest fresh monthly lows reached on Friday at 1175.17. A break below the last, the pair may fall further to the channel support located at 1172.29.”