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Gold (XAU/USD) sold-off aggressively amid the ongoing broad-based US dollar comeback on Wednesday and finished the day at $1942, having booked a 1.5% loss. So far this Thursday’s trading, the yellow metal attempted a pullback from three-day lows but the bounce appeared shallow, as the dollar held onto the overnight gains, FXStreet’s Dhwani Mehta briefs.

Key quotes

“All eyes now remain on the US Jobless Claims and ISM Services PMI data for a fresh direction in the yellow metal. In the meantime, ‘sell the bounce’ trading could remain in play, as the technical outlook appears bearish in the near-term.”

“An hourly closing below the $1944 has confirmed the bearish breakdown, opening floors for a test of last week’s low of $1903. The bulls, however, could be offered some temporary respite near Wednesday’s low of $1932.72. The next relevant cushion comes in around the $1925 region, last Friday’s low.”

“Should the price manage to resist above $1925, a bounce-back towards the robust support now resistance at $1944 will be on the cards. The buyers will then aim for the key $1950 barrier, the convergence of the horizontal 200-hourly Simple Moving Average (HMA) and bearish 21-HMA.” 

“The hourly Relative Strength Index (RSI) points south while below the midline, suggesting more scope to the downside.”

 

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