XAU/USD technical outlook

• Gold erased its previous gains on the back of improvements in the global economic sentiments.
   
• Last week pair hit the fresh monthly high at $1263 level and returned back below $1200 mark.
   
• A daily close below $1188 level will confirm the bearish bias again.
   
• Alternatively, reversal from key support will take the parity back above $1250 marks.
   
• 10, 25 and 50days EMA still confirms the bullish bias but on the other side RSI signals the short term trend reversal.
   
• Initial support levels are seen at $1190, $1187 and $1182 thereafter.
   
• Key resistance levels are seen at $1198, $1202 and $1208 levels.
   
• Positioning is inconclusive at this point but still bullish hopes alive.

Trading Call:

Long XAU/USD at $1195, stop loss $1187 and target $1208.