Forex Trading Library

Intraday Analysis – Gold tests key floor

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GBPUSD seeks support

Chart of GBPUSD

The pound softened after a rise in the UK jobless rate over the past three months. The pair has met buying interests near the previous swing low of 1.2440. A bullish RSI divergence suggests a deceleration in the sell-off which could be most likely driven by profit-taking. A close above the first resistance of 1.2540 has eased some of the pressure and the bulls will need to clear sellers’ last stronghold at 1.2600 before cable could resume its uptrend. Otherwise, a deeper correction would send the exchange rate towards 1.2380.

USDCAD bounces back

Chart of USDCAD

The Canadian dollar saw some support after the annual inflation rate unexpectedly rose in April. On the daily chart, the pair is still in a consolidation between 1.3300 and 1.3800. The recovery has hit resistance at 1.3560 and a fall below the first support of 1.3490 dented the latest momentum. 1.3400 at the base of the rally is an important level to keep the current rebound valid. Failing that, the greenback would revisit 1.3330 where a breakout would make the pair vulnerable to a bearish reversal towards 1.3000.

XAUUSD consolidates gains

Chart of XAUUSD

Gold slipped after Richmond Fed President Thomas Barkin’s comment for more rate hikes lifted the dollar. The precious metal is trying to safeguard its recent gains after a new all-time high at 2080. Fresh selling and profit-taking have let the quote drift lower with 1980 as a critical floor to keep the directional bias upward. The RSI’s oversold situation has attracted some buyers and 2020 is the first hurdle to clear to force sellers to cover. Only a close above 2045 would attract momentum buyers and signal a bullish continuation.

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