USDCHF a bit down, XAUUSD not changing much and we might say USOIL steadily goes up

USDCHF tests daily support

Intraday Market Analysis – USD Cuts Through Support - 1

The US dollar plunged after December’s CPI slowed down to 0.5% from 0.8% in November.

Despite a swift recovery from the daily support at 0.9100, price action came under pressure once again at December’s supply area (0.9280). The dive below 0.9180 then 0.9140 is a sign of liquidation as buyers rush to the exit.

As the greenback revisits the critical support at 0.9100, an oversold RSI may attract some buying interest. The former demand area around 0.9200 is now the first resistance level.

XAUUSD looks to break out

Intraday Market Analysis – USD Cuts Through Support - 2

Gold edged higher as the US dollar softened across the board.

The precious metal has met stiff selling pressure in the supply zone around 1830. This level used to be a support from last November’s sell-off.

The recovery above the psychological level of 1800 shows the bulls’ commitment to keeping the price afloat. A break above the supply zone would force the sell-side to cover and trigger an extended rally towards the previous peak at 1870.

On the downside, 1800 has turned into a fresh support.

USOIL continues upward

Intraday Market Analysis – USD Cuts Through Support - 3

WTI crude climbed higher after a larger-than-expected fall in US inventories. A close above the daily resistance at 79.00 was a strong bullish sign.

Following a brief pause, the rally accelerated above 80.40. Sentiment remains upbeat and the bulls are keen to buy the dip during a pullback. A breach above 82.20 would clear the path to the peak at 85.00.

An overbought RSI may cause a temporary retreat. In that case, trend-followers could be looking to jump in near the closest support at 81.20.

John Benjamin

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