USD sees limited pullback
|GBP/USD tests major demand zone
The US dollar rallies as hiring remains strong despite moderate wage growth. As the pair approaches March 2020’s lows around 1.1450, the RSI’ oversold situation prompts sellers to take some chips off the table. Along with ‘buying-the-dips’ in this demand zone, the pound may find some support. 1.1650 is the closest resistance where trend followers could be expected to sell into strength. A fall below March 2020’s lows at 1.1450 would force the last buyers out and open the door for further extension to the south.
XAU/USD struggles to bounce
Bullion finds temporary respite in the wake of mixed nonfarm payrolls. The price action is hovering above July’s low and a critical floor at 1680. This is a decisive moment as a breakout would invalidate the previous recovery and send the precious metal into a bearish spiral. A combination of profit-taking from short-term traders and bargain hunting from medium-term traders may drive the price higher. 1724 is the first resistance and its breach could lift offers to the support-turned-resistance at 1745.
GER 40 hits resistance
Equities remain under pressure as investors brace for more aggressive tightening by central banks. A bearish MA cross on the daily chart suggests that sentiment has shifted to the cautious side and the selling pressure might intensify. On the hourly chart, the index found support at the origin of the rally back in mid-July at 12550, but 13040 has proven to be a tough level to crack. The whipsaws could direct the Dax 40 back to the double bottom near 12420 which is the level that separates a recovery from a bearish continuation.
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