XAUUSD tests demand zone
Gold corrected after reaching oversold levels as prices ventured towards the $2300 area. The metal is now testing the 2335 zone near the base of the previous breakout rally. An initial bounce is a sign of profit-taking by short-term sellers in this area of significance, which could ease the downward pressure. 2360 is the closest resistance, and 2385 is another hurdle to return to fresh highs. On the flip side, a break of 2320 could renew selling interests to test another multi-week low.
USDCHF looking for a breakout
The Swiss franc recouped some losses as price action slid towards the 0.9100 level. With the RSI also falling away from the overbought zone, a sense of stabilization is becoming more visible on the chart. The latest downturn suggests growing interest from the sell side, but bears must move into the mid-0.9000 range before a meaningful recovery can happen. A psychological level of 0.9000 is critical to keeping momentum intact.
AUDUSD bouncing back
The Australian dollar attempts to hold ground after finding support at the 0.6600 level. The pair is struggling to reach above 0.6710, which coincides with the latest spike on the upside. Further buyers have been attracting more buyers as the RSI ventures into the overbought area. However, they must move past the immediate resistance of 0.6670 before further upside momentum can continue. On the downside, a bearish reversal would lead to another round of sell-off below 0.6550.
