Forex Trading Library

Intraday Analysis – USD pulls back

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EURUSD bounces off key support

The US dollar slumped as the Fed raised interest rates by 25 basis points as widely expected. The pair has given back over half of the gains from the rally earlier this month. Medium-term sentiment would stay bullish as long as the price is above the key support of 1.1010 which is at the confluence of the 30-day SMA and the base of a breakout rally in mid-July. A bullish RSI divergence is an encouraging sign as selling interests seem to be fading. 1.1140 is the first resistance to clear before a recovery would gain traction.

XAUUSD bounces back

Gold moved up as US Treasury notes retreated in the wake of the Fed meeting. A combination of a break above the daily resistance of 1980 and a bullish MA cross on the daily chart indicates that sentiment might have turned around following a two-month long correction. 1953 near a previous swing low is where buying has reemerged, and an initial pop above the first resistance of 1968 may have eased the short-term selling pressure. The recent peak of 1987 is the first target ahead and its breach would resume the climb.

USOIL seeks support

WTI crude lost some steam over a smaller-than-expected drawdown in US crude inventories. A break above the previous high of 77.30 has attracted momentum buyers, extending the recovery to the psychological level of 80.00. The RSI’s double top in the overbought area may limit the bullish impetus and give buyers some breathing room. 78.40 is the closest support and 76.50 at the start of a breakout would be the bulls’ second line of defence. A rebound would bring the commodity to the supply zone around 80.60.

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