Intraday Analysis – Gold strives for support – Orbex Forex Trading Blog

USDJPY seeks support

The US dollar steadies as minutes from the Fed policy meeting cement expectations of another rate hike. The pair has hit resistance at 145.00 from last November’s liquidation. A bearish RSI divergence suggests a deceleration in the upward momentum and could carry significant weight in this supply zone. 144.00 is the first support and its breach would force leveraged long positions to close and trigger a correction. 142.30 over the 20-day SMA would be a key level to expect buyers to return and keep the bullish bias intact.

XAUUSD hits resistance

Bullion slid after upbeat FOMC minutes pushed US Treasury yields higher. The price seems to have secured a foothold around the psychological level of 1900 and a series of higher lows combined with a tentative break above 1930 suggest a mounting buying pressure. But the precious metal needs a decisive close above 1935 which coincides with dynamic resistance of the 20-day SMA to flush out the remaining selling interests and extend the rebound to 1955. On the downside, 1912 is the immediate support to keep momentum intact.

USOIL tests key resistance

WTI crude capitalises on Saudi Arabia’s announcement to extend its output cuts into August. A bounce off the critical floor of 67.00 and above the psychological level of 70.00 shows that the buy side has not thrown in the towel yet. The narrowing consolidation is due for a breakout which will dictate the next directional move. The previous swing high of 72.50 is a major hurdle to lift before they could hope for a sustained recovery. 69.90 is the first support and 67.00 the bulls’ last stronghold to prevent a bearish continuation.

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