FXStreet Editor and Analyst, Dhwani Mehta, gives the technical outlook and key levels for XAU/USD into the US CPI data release.
“The pair edged higher today amid persistent US dollar weakness across the board ahead of crucial US CPI figures and Fed Chair Yellen’s speech due later in the NA session. The daily RSI has ticked slightly higher indicating further upside bias persists.”
“To the upside, the pair is likely to test the 5-DMA and 100-DMA confluence around 1211.70-1212.80 zone. A break beyond the last resistance zone, the pair may edge higher to 200-DMA upside barrier located at 1214.80.”
“A worse than expected US CPI print may boost the XAU bulls, thereon, taking the pair to 1225 levels.”
“In case the CPI figures beat markets expectations, USD bulls will jump back into the bids dragging the pair below 1200 – psychological levels.”