Intraday Analysis – USD reclaims some lost ground
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.
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.
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.