XAU/USD Outlook: Gold Recovers as Dollar Bulls Take Breather; 10SMA Would Be a Trigger

Technical analysis of Forex market

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.

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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

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