XAU/USD Struggles in a Narrow Range Awaiting Greenback to Drive the Market

The precious metal is posting a negative movement after the bounce off the $1,288 resistance level as it failed to hit again the $1,306 obstacle. On a weekly basis, the XAU/USD pair is still developing in an uptrend since December 2016 and edged sharply higher more than 8.8%. The next level to watch to the downside is the $1,261 - $1.263 support zone. In addition, the price is trading within a narrow range over the last three weeks with upper boundary the $1,288 resistance level and lower boundary the $1,263 support barrier.

On the daily chart, the yellow metal plunged below the bearish crossover within the 50 and 100 SMAs signaling for further sell-off, while the technical indicators are remaining below their mid-levels and are moving with weak momentum. The RSI indicator is moving below the 50 level and the MACD oscillator is slightly rising in the negative area.

Too soon to buy, too late to sell. But just a good time to steer clear of this.