XAU/USD might test the support at 1255 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, anticipates that XAU/USD might make a move lower towards the support at 1255 if it breaks below the immediate support at 1257.85 levels.

Key Quotes

“Gold prices in terms of US dollar (XAU/USD) rose to four month highs on Wednesday to settle at 1262.03 levels after the Swiss National Bank’s (SNB) decision sent the US dollar crashing against most if its counterparts.”

“...the immediate support seen at hourly 20-DMA located at 1257.85 levels.”

“The downside in the pair is also backed by the hourly RSI turning bearish at 63.011 levels. A break of these levels will drag the pair lower to test the next major support at 1255 levels.”

“In case of a failure to breach 1257.85 levels, the pair is likely to rebound to retest 1266.70 levels (Jan 14 High). The pair is likely to find a major resistance at monthly 20-SMA located at 1267.23 levels.”

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