Forex Trading Library

Intraday Analysis – Gold Looks for Direction

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EURUSD finds support

The euro finds support from upbeat PMIs in the eurozone. The double bottom on the 4-hour chart at the lower 1.08 region continues to fuel the upward thrust. Price action has consolidated its gains above 1.0860, making it a major level to keep the single currency ahead. A hold above would confirm that the uptrend is still intact, with the former support and psychological level of 1.09 as the next target. Its breach would send the pair to 1.0960 at the previous consolidation.

GBPUSD hits resistance

The pound jumped 100 pips as the greenback’s weakness was felt across the board. A second attempt at December’s high of 1.2830 could fail if resistance is found at 1.28. A break below 1.2710 would suggest another downturn would continue the choppy trend. Whether this will be a correction, or a reversal will depend on the intensity of the sell-off. 1.2660 is the first support, and 1.2610 over the 20-day moving average is the bulls’ second layer of defence.

XAUUSD bounces off support

Bullion remains consolidated in a $20 range after bouncing off the 2000 level. The price is undecided on the chart after failing to break past 2035. This is a primary bull-bear line as gold recouped losses from December’s downturn. Despite choppy price action, the overall direction favours a bullish upswing. 2020 is the closest support, and a hold here can open the door back up to 2040 and then 2065, which was the last drop on the yellow metal.

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