Forex Trading Library

Intraday Analysis – Gold Attempts to Break Free

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XAUUSD gaining momentum
XAUUSD Chart: Gold jumped, striving to secure gains amid geopolitical tensions, indicating significant market movement.

Gold jumped over $60 as geo-political tensions ensued. The precious metal is trying to safeguard its recent gains after a slight dip in price action towards 2340. Fresh selling and profit-taking have seen prices drift lower, with 2300 acting as a critical floor to keep the directional bias upward. The RSI’s overbought situation has attracted some sellers, and 2320 is the first hurdle to clear to the downside. Only a close above 2380 would attract momentum buyers and signal a bullish continuation.

GBPUSD seeks support
GBPUSD Chart: Pound holding ground post-recession exit.

The pound continues to hold ground after it was announced that the UK has exited a recession. The pair has met buying interests near the previous swing low of 1.2420. A bullish RSI divergence suggests a move away from a sell-off back down to the 1.2300 area. A close above the first resistance of 1.2550 could ease some of the pressure, and bulls will need to clear the next hurdle at 1.2620 before cable can resume the uptrend. Otherwise, a deeper correction would send the exchange rate towards 1.2350.

USDCAD remains choppy
USDCAD Chart: Canadian dollar sees support after triple bottom.

The Canadian dollar saw some support after hitting a recent triple bottom. On the chart, the pair remains choppy between 1.3600 and 1.3760. The current recovery has hit resistance at 1.3690, with 1.3620 at the base of the rally being a vital level to keep the current rebound valid. Failing that, the greenback could revisit 1.3845, where a breakout would make the pair vulnerable to a bullish drive towards the yearly high above 1.3900.

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