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XAUUSD : Trading In Overbought Zone

Gold continues to strengthen again US dollar on the concern over the growth in US economy. The series of weak US data in the first quarter of 2014 boosted the gold price opposing the analysts expectations of strengthening US dollar and weakening gold after the tapering decision. On the daily chart, the pair is right now testing the key resistance at 1329.27. If it breaks this resistance the pair may find the next resistance level at 1344.04. The trend still seems bullish from the technical perspective. From the stochastic oscillator the pair is in the overbought zone since Feb 11 and may continue to be. The signal trend line just crossed the moving average trend line on the oscillator giving a signal of continued upsurge.