The US dollar tumbled after weaker-than-expected nonfarm payrolls in September.
The pair has struggled to bounce back over the past few weeks. The break below 1.2500, a major demand zone on the daily chart, is the straw that broke the camel’s back. 1.2430 is the next support. And its breach could trigger an extended sell-off towards July’s low at 1.2300.
As buyers bail out, high volatility has pushed the RSI into the oversold territory. A bounce is likely to be capped by 1.2600, and it could be an opportunity to sell into strength.
Gold surges as a slowdown in the US job market weighs on the US dollar.
A bullish candle above the first resistance on the daily chart (1775) has forced the bears to cover their positions, exacerbating the momentum in the process. Now that the selling pressure is out of the way, the bulls may consolidate their gains and build strength for a reversal.
The psychological l