Forex Trading Library

Intraday Analysis – Gold Bounces on CPI and FOMC

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USOIL on course for recovery
USOIL Chart: WTI crude oil approaches recovery, targeting key levels for a possible full retracement.

The WTI crude closes in a full recovery after breaching the 78.00 zone. Still, a full retracement of the previous swing high above 80.50 has some way to go. As the price inches towards the double top of 79.40 on the daily chart, bargain hunters moved in, and the price became pressured. 80.00 is the first level to lift before bulls can hope for a genuine rebound. Otherwise, the oil price could see another correction, only this time a move towards 77.00 and below.

GBPUSD begins to reverse
GBPUSD Chart: "GBPUSD shows a significant bounce, facing key levels for potential reversal and rebound.

Cable had a day to remember after bouncing over 100 pips as inflation remained relatively unchanged, hinting that the Fed could act soon. The market mood has stayed positive despite a retracement on the pair after hitting the 1.2850 zone. A complete reversal still needs to break 1.2750 to the downside before a move to 1.2700 can happen. Any chance of a rebound will require a move past 1.2800 before topping 1.2860 in the near term.

XAUUSD testing major support
XAUUSD Chart: Gold tests major support levels with critical floors and hurdles for potential price movements.

Bullion tumbled after hitting a fresh high at 2340 as the Fed remains cautious about its next move. As the price struggles to secure support in its corrective phase, the recent double bottom around 2310 is the recent bulls’ last stronghold and a critical floor to stabilise sentiment. Its breach would trigger a round of liquidation with a psychological level of 2300 as a potential target. 2330 is the first hurdle to break, and only a close above 2370, which has proved to be a challenging level to crack, would shift sentiment.

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