Forex Trading Library

Intraday Analysis – Gold still probes bids

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AUDUSD tries to recover

The Australian dollar bounced back after job data in August beat expectations. The pair has found a steady ground above 0.6370 and is making another rebound attempt. 0.6460 on the 20-day SMA is the immediate resistance and its breach would bring the quote to the recent high and the daily support-turned-resistance of 0.6520 which is a key ceiling to lift before the bulls could hope for a sustained recovery. Otherwise, a fall below 0.6370 would trigger a new round of sell-off to last November’s low of 0.6280.

XAUUSD struggles for support

Gold trades lower as a still hot US inflation reading keeps the dollar supported. A failure to hold above 1916 has further put the bulls on the defensive as the precious metal continues to struggle for bids. 1904 at the base of a rally in late August is another threshold to see if buying interests would re-emerge, and the bulls will need to clear 1920 then the limited swing high of 1930 to regain control. Further down, 1890 at the August low is a critical floor to keep bullion steady as a breakout could press the bids towards 1850.

UK 100 grinds supply zone

The FTSE stalled after the UK’s GDP showed a bigger-than-expected contraction in July. On the daily chart, the price is in a lengthy flag consolidation from last February with 7220 as a three-time tested demand zone. A rise above the recent high of 7520 indicates an interest in putting the index back on track. 7600 could be the bears’ last stronghold and its breach may trigger a bullish continuation in the medium term. However, stiff selling may be expected from profit-taking and fresh selling with 7470 as the first support.

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