Forex Trading Library

Intraday Market Analysis – USD recoups some losses

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USDJPY bounces back

The US dollar clawed back losses as services PMI exceeded expectations. A bullish RSI divergence indicates a loss of momentum in the sell-off. The pair bounced off the demand zone around 130.50 at the start of the June breakout. This could be due to profit-taking from the short side. A close above 134.50 would help the bulls reclaim control of the price action. From the daily chart perspective, the uptrend is still intact in the medium-term, though there is a chance of consolidation in the coming days.

XAUUSD seeks support

Gold softens as US Treasury yields bounce over solid economic data. The price hit resistance at 1790 which used to be a critical floor on the daily chart. Sentiment has remained cautious after its breakout and the bears could be waiting to sell into strength. A break below 1770 has prompted some leveraged buyers to bail out leaving 1754 as their second line of defence. Its breach could attract momentum selling and extend losses towards 1720. Only a rally back above 1790 would renew buyers’ interest and send bullion to 1825.

USOIL breaks critical support

Oil prices slumped after OPEC+ decided to raise output. Downbeat sentiment prevails as WTI struggles to achieve a higher high. The recent rebound came to a halt at 101.80 next to the 30-day moving average. A subsequent fall below 96.50 suggests that the path of least resistance is still down. A break below 91.10 could trigger liquidation towards 85.00, opening the door for a bearish reversal in the weeks to come. 96.20 is the first hurdle and the bulls need to clear 101.80 before a recovery could take place.

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