Forex Trading Library

Intraday Analysis – USD Holds Strong,The FTSE 100 Eyes Recovery

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UK 100 consolidates gains
The FTSE 100 Chart: Illustrating consolidation of gains after UK recession confirmation, aiming for 7700 zone, with potential resistance at 7600 and support at 7500.

The FTSE 100 bounced back after confirmation that the UK fell into a technical recession. Prices now remain on an upward trajectory after bouncing off the 20-day SMA. In the medium term, the 7700 zone looks to be the aim after a straight week of declines saw the 7500 level being tested. But price action could struggle with the RSI showing signs of inaction as the index reaches the round number 7600. A pullback would allow the bulls to catch their breath, and 7650 will be the first level to be tested.

EURUSD continues the downtrend
EURUSD Chart: Showing downtrend continuation with resistance levels at 1.0790 and 1.0815, support at 1.0685.

The US dollar continues its progression after the latest round of CPI data. The pair saw a slight bounce off 1.07 as traders looked for a new support level. However, the top of the rebound at 1.0750 showed a spike with an upper shadow, indicating rejection of the upside. The former demand zone around 1.0790 is the hurdle ahead, and only a close above 1.0815 would reignite hopes of a bullish reversal. Otherwise, a drop below 1.0685 would return the selling pressure and drive the euro towards 1.0600.

XAUUSD looks for reprieve
XAUUSD Chart: Depicting gold's attempt at retracement after a $40 drop, with potential support at 1985 and resistance at 2015.

Gold attempted a retracement after the $40 drop, which saw prices fall through the 2000 handle. The metal looks to have found a floor at 1985 after the RSI was majorly oversold. This has seen a slowdown in the downward momentum that saw gold hit multi-month lows. However, prices still seem precarious, with no confirmation yet of a turnaround, which would be a rise above 2015. In the meantime, 1990 could be the next stop if another sell-off ensues.

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