XAU/USD Technical Outlook – 18, Jan
The XAU/USD pair retains its bullish potential intact, despite the lack of follow-through from these last few days. The daily chart shows that technical indicators are barely correcting overbought conditions but without enough strength to suggest a continued slide. At the same time, the 20 Simple Moving Average (SMA) heads firmly north, well above the longer ones, which also gain upward traction.
Near-term buyers defend the downside at around $1,900, and the 4-hour chart shows absent selling interest. XAU/USD is repeatedly bouncing from a bullish 20 SMA, currently at around $1,908.90. The longer moving averages, in the meantime, keep advancing below the shorter one, reflecting buyers’ strength. Finally, the Momentum indicator eased towards its midline but remains above it, while the Relative Strength Index (RSI) has lost its directional strength and hovers around 60, maintaining the risk skewed to the upside.