Forex Trading Library

Intraday Analysis – Gold struggles for support

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USDCHF bounces back

The US dollar bounced after a surge in May’s non-farm payrolls. The pair is testing the former daily demand zone around 0.9100 as it recoups losses from the April sell-off. A series of higher lows on the hourly chart indicates the bulls’ eagerness in carrying the rebound, and a brief retreat to 0.9020 was merely a test of their commitment. A bearish breakout would force the long side to bail out and trigger a liquidation to 0.8940. A close above 0.9110 would confirm the bullish skew and extend the rally to 0.9220.

XAUUSD tests critical support

Gold tumbled as the dollar index recovered amid strong US hiring. The precious metal is at a crossroads on the daily chart, trading between the base of the March breakout rally (1930) on the downside, and the area of congestion formed by the support-turned-resistance of 1985 and the 20-day SMA on the upside. A halt at 1985 and a follow-through below 1955 are signs of a stiff selling pressure, with the latter becoming a fresh resistance. As the RSI goes oversold, 1932 is a critical floor to avoid a deeper correction below 1900.

US 30 breaks higher

The Dow Jones 30 soared as investors expect the Fed to skip a rate hike this month. First, a double dip near 32600 showed that the price has stabilised during its corrective phase. A subsequent break above 33200 and a stronger extension above the previous swing high of 33650 forced sellers to cover and stirred up volatility. Sentiment is turning around which is a prerequisite for a sustained rebound above 34100. As the RSI shot into the overbought area, 33300 is the closest support to let the bulls catch their breath.

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