Intraday market analysis: Gold attempts bullish breakout

Jing Ren Orbex

XAU/USD challenges resistance

Gold whipsawed after Fed Vice Chair Richard Clarida’s hawkish comment on the US recovery.

The price is holding on to its gains above 1805. A previously oversold RSI has prompted buyers to bid the dip in this demand zone. Now buyers are looking to accumulate chips once more.

The double top at 1832 would be the last hurdle as a breakout could propel the precious metal towards 1860.

On the downside, 1793 at the lower end of consolidation is a key floor in case of the market’s prolonged hesitation.

EUR/JPY tests major support

The euro stabilized as the eurozone’s retail sales in June (yoy) beat expectations. The pair has met stiff selling pressure at the 20-day moving average (130.50).

The RSI divergence acted as a warning sign when price action was in the supply zone. The confirmation came in the form of a break below 129.60. The RSI has recovered into the neutral area, as a temporary rebound for the bears to sell into strength.

130.20 is key resistance, and a drop below 128.80 could trigger a wave of sell-off to 127.00.

US oil heads towards daily support

WTI crude fell as US inventory rose by 3.6M barrels last week.

The bearish MA cross on the daily chart could be the start of consolidation for the days to come. The fall below 71.80 is an indication that sentiment has turned sour in the short term at least.

The price is grinding down along the 30-hour moving average. The RSI’s double-dip in the oversold area may prompt a limited bounce.

But as long as the price stays below 70.80, sellers are likely to drive the action towards 66.00, a critical demand zone on the daily timeframe.

Author

Jing Ren

Orbex

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.

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