Forex Trading Library

Intraday Analysis – USD reclaims some lost ground

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EURUSD falls back
EURUSD-CHART-6-12-2023

The US dollar recouped more losses after a better-than-expected services PMI. The pair has struggled to secure bids after it turned south in the 1.1000 supply zone from last August’s sell-off. Short-term sentiment went downbeat following a slide below the 20-day SMA (1.0850), prompting more buyers to take profit and wait on the sidelines. The resistance-turned-support of 1.0720 is an important level to expect stabilisation and assess the strength of follow-up interest. 1.0890 is the immediate hurdle in case of a bounce.

AUDUSD hits resistance
AUDUSD-CHART-6-12-2023

The Australian dollar steadied after the GDP YoY exceeded expectations in Q3. The price has struggled to stay in the supply zone 0.6690-0.6700 where the August liquidation originated. A bearish RSI divergence already foreshadowed potential weakness in this significant area. A drop below 0.6600 could be seen as confirmation for a correction with the bulls scrambling for the exit. 0.6530 over the 20-day SMA would be their second layer of defence and its breach would put 0.6460 at risk. 0.6620 is the first resistance to clear.

XAUUSD breaks support
XAUUSD-CHART-6-12-2023

Gold retreat as the dollar tries to stage a bounce ahead of jobs data. On the daily chart, a long spike above the all-time high of 2080 indicates rejection of offers and the RSI’s double top in the overbought area may have instilled a bit of doubt on the current momentum. A fall below 2035 would force some buyers out, and the price could be in for a pullback as trend followers might look for a steeper discount. The psychological level of 2000 coincides with the 20-day SMA, making it an area of interest. 2075 is a fresh resistance.

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