Gold might continue its range-game – FXStreet

FXStreet (Barcelona) - Dhwani Mehta, FXStreet Editor and Analyst, gives the technical outlook for XAU/USD, expecting the precious metal to maintain its range-game ahead of the FOMC statement.

Key Quotes

“Currently, XAU/USD clings to the channel resistance-turned support located at key 1200 levels with the downside cushioned by 20-DMA support located at 1199.73. The pair did breach the last, however quickly bounced-off lows and rebounded higher to trade now at 1201.09 levels.”

“The pair trades in slim range, consolidating previous gains, as markets remain cautious as the Fed starts its 2-day policy meeting later today. The daily RSI at 53 in the bull range has turned slightly flat indicating XAU bulls may take a wait-and–watch approach ahead of FOMC statement due tomorrow. Hence, XAU/USD may largely extend the range play, extending upside to 1207 (April 27 High) levels.”

“To the downside, the pair could retest 20-DMA at 1199.73 levels, below which floors may open for a test of crucial support at 1192.50 levels where 5-DMA and 50-DMA converge.”

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