- XAU / USD posted modest daily gains on Wednesday.
- The selling pressure surrounding the USD remains intact early in the US session.
- XAU / USD could target $ 1,900 with a breakout above $ 1,886.
The pair XAU / USD it gained traction in the last hour and climbed above $ 1,880. In the absence of major releases of macroeconomic data and fundamentals, the USD market valuation remains the main driver of the pair’s movements. At time of writing, the XAU / USD was up 0.2% on the day at $ 1,882 and the US Dollar Index was down 0.4% at 89.63.
Technical perspective of the XAU / USD
On the one-hour chart, the XAU / USD is currently trading above the key 100 and 200 SMAs, suggesting that bullish momentum is picking up. Also, the Relative Strength Index (RSI) indicator on the same chart continues to float above 50.
On the upside, the initial hurdle is lined up at $ 1,886, where the price found resistance twice as early in the day. With a breakout above that level, $ 1,896 could be seen as the next resistance before $ 1,900 (psychological level). On the other hand, the first support is located at $ 1,876 (100/200 hourly SMA) before $ 1,870.
1 hour chart
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