Intraday Market Analysis – Gold Awaits Breakout

XAUUSD tests daily resistance

Gold consolidates recent gains ahead of the US jobs reports.

Traders are looking for direction after the metal recouped most losses from the August sell-off. 1832 is major resistance on the daily chart.

A bullish breakout may trigger an extended rally as the short side bails out. We can expect volatility with 1860 as a potential target. A fall below 1790 however would tip the balance to the downside.

1755 would be the first support in a retracement. In the meantime, an overbought RSI has led intraday buyers to take profit.

EURGBP consolidates support

The euro inched higher after a drop in the unemployment rate across the eurozone in July.

The recovery has gained momentum after the pair cleared the daily resistance at 0.8555. The 20-day MA crossing the 30-day one suggests that sentiment may have turned around.

Following a short consolidation, the single currency has met buying interest along 0.8550 and then 0.8570. 0.8610 is the next resistance and its breach could clear the path for a rally to the recent peak at 0.8660.

USOIL hits key resistance

WTI crude found support from the EIA’s report of a large reduction in US stockpiles. The V-shaped rebound is now testing the key hurdle on the daily timeframe (69.50).

An RSI divergence indicates a loss in the upward momentum. Short-term buyers have taken some chips off the table and caused a pullback. 67.00 is the immediate support.

A deeper retracement may send the price to 65.30. On the upside, a close above 69.50 may open the door to 73.00 and reverse an eight-week long correction.

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