XAU/USD Outlook: Gold recovers as dollar bulls take breather; 10SMA would be a trigger

GOLD

Spot gold holds positive tone for the second day as week-long dollar's rally is losing traction and may take a breather on overbought conditions.Recovery extension hit high at $1315, retracing 50% of $1326/$1302 pullback and signaling formation of higher low at $1302 (07 Feb low).Fresh strength looks for confirmation on daily close above cracked 10SMA ($1312), to ease downside risk and shift focus higher.Break above 10SMA would bring daily MA's to full bullish setup and add to positive signals from strengthening bullish momentum and north-heading stochastic, which reversed higher after rejection at oversold zone border.

Res: 1315; 1317; 1320; 1326 Sup: 1307; 1302; 1300; 1295

 

Interested in XAUUSD technicals? Check out the key levels

R3 1322.8 R2 1317.4 R1 1313.6 PP 1308.2 S1 1304.4 S2 1299 S3 1295.2

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