Forex Trading Library

Intraday Analysis – Gold consolidates gains

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GBPUSD attempts to rebound

Chart of GBPUSD

Cable inched higher as Britain’s inflation remained double digit. The latest retracement has found support on the 20-day SMA (1.2350) and a bounce above the immediate resistance of 1.2340 eased some pressure. Sentiment remains positive from the daily chart’s perspective and the bulls may see the short-term consolidation as an opportunity to join the uptrend. A break above the recent high of 1.2540 may convince more conservative traders to jump in. On the downside, 1.2270 would be a second support level.

XAUUSD seeks support

Chart of XAUUSD

Gold tumbles as the dollar index and Treasury yields recover. Following the RSI’s overbought double top on the daily chart, the price turned south at 2048, falling short of the all-time high at 2070. The pullback would give the metal some breathing room after a month-long rally. Successive breaks below the psychological level of 2000 then 1980 led to the liquidation of leveraged short-term positions. The demand zone around 1950 is critical to see buyers’ commitment. 2010 is the first hurdle should the price bounces back.

USOIL drifts lower

Chart of USOIL

WTI softens on subdued risk appetite across markets. The bulls have struggled to hold the psychological level of 80.00 near the base of a follow-through rally from last week. As the upward momentum dies down, bids come lower as short-term traders take their chips off the table. The price might be vulnerable to a broader sell-off after it broke below the swing low of 79.30, which would fill the gap from early April. 75.50 next to the daily SMAs’ bullish cross would be a key support. 81.40 is the closest resistance ahead.

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