Forex Trading Library

Intraday Analysis – Gold grinds major resistance

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USDCAD consolidates gains

USDCAD CHART 18-10-23

The Canadian dollar stalled after a slowdown in September’s CPI. On the daily chart, overall sentiment has significantly improved following a series of swing highs. The pair is still striving to consolidate its gains after clearing offers around the September high of 1.3690. 1.3720 off the recent peak is a major resistance to break to signal a bullish continuation towards 1.3900. In the meantime, 1.3580 along the 20-day SMA is the immediate support and the trough at 1.3490 would be the bulls’ second layer of defence.

EURGBP bounces back

EURGBP CHART 18-10-23

The pound struggled as wage growth over the three months to August came out short of expectations. The latest rise above the key resistance of 0.8670 has forced more sellers to cover, foreshadowing a potential bullish continuation. The recent high of 0.8700 may see stiff selling pressure as it could be sellers’ last line of defence. A bullish breakout could extend the single currency’s gains towards 0.8800. As the RSI drops back into the neutral area, 0.8640 is an important level to maintain the current momentum.

XAUUSD tests daily resistance

XAUUSD CHART 18-10-23

Gold hit resistance as solid US retail sales data pushed Treasury yields higher. The price has recovered most of the losses from the liquidation late last month, probably driven by a combination of profit-taking by short-term sellers and fresh buying at the 7-month low. A break above the double top of 1945 would force the bears to switch sides and signal a sustained recovery towards 1985. Before that, the precious metal might take a breather and 1968 would be a key support to expect follow-through bids.

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