Forex Trading Library

Intraday Analysis – Gold still in correction

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AUDUSD falls back

The Australian dollar fell after the RBA held interest rates for a second straight month amid cooling inflation. The pair’s previous struggle to stay above 0.6720 forced buyers to liquidate their positions in a sharp sell-off. A subsequent bounce has failed to turn the tide by stopping short in the former accumulation area around 0.6740. The daily support of 0.6600 is an important level to see if buyers make their way back or the Aussie could retreat into a M-shaped dip towards 0.6500. 0.6660 is the first hurdle to lift in case of a rebound.

NZDUSD tests support

The New Zealand dollar slipped after an uptick in the Q2 unemployment rate. A break below the demand zone formed by a consolidation area in early July has brought into question the validity of the rally last month. A brief bounce hit resistance at 0.6220, suggesting that the path of least resistance might be down. A fall below 0.6120 would expose the daily swing low of 0.6050. The RSI’s oversold condition may attract some bargain hunters but the buy side will need to clear 0.6220 before they could push back.

XAUUSD struggles for support

Gold drifts lower as the US dollar finds support from solid manufacturing data. While a bullish MA cross on the daily chart is an encouraging sign, the short-term price action is still having a hard time to secure a foothold to prevent the current correction from turning into a reversal after an abrupt fall below 1950. 1972 had capped a previous bounce, making it a critical ceiling to lift to resume the climb. Failing that, a dip below the recent low of 1942 would trigger a new round of sell-off with 1923 as a potential target.

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