Intraday Market Analysis – USD Bounces Higher
EURUSD hits resistance
The US dollar bounces back ahead of inflation data later in the week. A bullish MA cross on the daily chart suggests that the recovery may have picked up speed. Even though the rally had come under pressure in the supply zone (1.0790) from a sell-off in late April, a bounce above 1.0730 showed solid buying interest. A close above the aforementioned resistance could trigger an extended rally towards 1.0930 which is an important hurdle on the daily chart. 1.0630 is the first support in case of further hesitation.
XAUUSD seeks support
Gold dips as the US dollar recovers across the board. A pop above the top of the previous consolidation range at 1870 has flushed out some selling interests. The precious metal is looking to hold onto its recent gains. 1828 at the base of the latest surge is a critical floor to keep the current rebound intact. The RSI’s oversold condition may attract some bargain hunters. But the bulls will need to clear 1856 to regain control. Otherwise, a bearish breakout could send bullion to the psychological tag of 1800.
US 30 consolidates gains
The Dow Jones 30 rallies as the Biden administration considers lifting some tariffs on China. Sentiment improved after the index soared above the 30-day moving average. The bulls are trying to hold above the former sell zone near 32600 which has turned into a support. A bearish breakout could send the index to 32050. On the upside, 33460 is the immediate resistance and its breach could lift offers to May’s high at 34100. Strong selling pressure could be expected as buyers may approach this supply zone with caution.