EURUSD attempts to rebound
The US dollar retreats as traders take profits over a crowded trade. The RSI’s oversold situation on the daily chart shows exhaustion past parity and the dollar could use some breathing room. As the bias remains down traders may look for a higher sell point. A bullish RSI divergence suggests a slowdown in the sell-off momentum and a rise above 0.9700 has prompted more sellers to cover. 0.9810 is the next resistance and short-term sentiment would not improve unless 1.0050 is broken. 0.9540 has become the closest support.
XAUUSD tests resistance
Bullion recoups losses as the greenback softens across the board. Still, the precious metal remains under pressure after the bulls gave up the critical floor around 1680. A brief consolidation was a signal that the path of least resistance had switched to the downside. 1615 has attracted some buying interests but most traders might worry about catching a falling knife. A new round of sell-off may send gold to April 2020’s low at 1570. 1670 has become a fresh resistance where the bears could be looking to sell into strength.
USOIL bounces back
WTI rallies back as US crude stocks fell more than expected. A fall below 82.00 has renewed the pressure on the buy side by invalidating the recent rebound. Trend followers may take this as a signal to add their stakes. The price is hovering above this year’s low at 75.00 with some bargain hunting off 77.00. An overbought RSI may limit the upside. The support-turned-resistance at 83.40 coincides with the 20-day moving average and could be a congestion area. Further up, stiff selling would be expected in the supply area next to 87.00.
