EURUSD breaks higher
The euro surges over speculation of a bigger-than-expected 50 basis point hike on Thursday. After a brief venture below parity, the price action triggered a ‘buy-the-dips’ behaviour. A pop above 1.0190 eased the downward pressure. As more sellers rush to cover in the overly crowded trade, high volatility could be expected. The support-turned-resistance at 1.0400 from the daily chart is the next hurdle. Though the single currency may take a breather with the RSI in the overbought area. 1.0120 would be the first support.
GBPJPY awaits breakout
Sterling inched higher after data showed that Britain’s job market remained strong. From the daily chart’s perspective, the pair is in a triangle consolidation between 160.00 and 168.50. Sentiment remains upbeat and a series of higher highs suggests that the bulls have been accumulating over the past two weeks. A close above 165.20 further tilts the mood to the bullish side. 166.80 could be the bears’ last stronghold and its breach could resume the uptrend. 164.30 is fresh support in case of prolonged hesitation.
XAUUSD nears critical floor
Gold consolidates as the US dollar retreats across the board. A short-lived rebound came to a halt at 1745. A downbeat mood still weighs on the price and trend followers are more likely to sell into strength. A bullish RSI divergence indicates a loss of speed in the sell-off as the precious metal approaches a 12-month low at 1682. An oversold RSI on the daily chart may attract bargain hunters. A break above 1745 could force the bears to bail out and initiate a rebound. Then the former support at 1790 would be the target.
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