Intraday Market Analysis – Gold Meets Resistance

Intraday Market Analysis – Gold Meets Resistance

XAUUSD tests key resistance

Intraday Market Analysis – Gold Meets Resistance - 1

The US dollar’s weakness continues to fuel the gold rush.

The precious metal has recouped most losses from the crash earlier this month. The rapid recovery indicates traders’ strong willingness to buy the dips.

The price is about to test the major supply zone between 1810 and 1830 from the daily chart. Analysts can expect stiff selling pressure as short-term buyers take profit.

A bullish breakout may jump-start the uptrend once again. As the RSI goes muted, 1785 is the first level to gauge the strength of the rebound.

USDNOK retreats to critical support

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The commodity-linked Norwegian krone strengthened as oil prices recovered.

The greenback had met stiff selling pressure at the double top (9.1000). The subsequent break below 8.8800 suggests that hands are weak on the long side.

Profit-taking and fresh selling have sent the price to 8.7800, which is critical support from the daily timeframe. Its breach could signal a bearish reversal.

An oversold RSI may attract some buying interest, but the bulls will need to lift offers around 8.9200 before they could push for a rebound.

USOIL heads towards daily resistance

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WTI crude rallied after the EIA showed a drop in the US inventories.

Price action continues on its upward journey after it bounced off May’s low at 62.00. A bullish RSI divergence at that major support suggested that the selling pressure was fading.

The rally above 67.40 is a confirmation that buyers have taken over. 69.50 is the hurdle ahead and a breakout may end a seven-week long consolidation and resume the uptrend.

An overbought RSI may trigger a limited pullback. 65.70 would be the first support in that case.

Jing Ren

Jing Ren is a Macro-Analyst at Orbex. Jin has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. Jing applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.