Intraday Analysis - Monday, August 31

XAUUSD testing $3400

Gold (XAUUSD) remains pressured after the Jackson Hole Symposium left more questions the answers.

• A bounce below 4500 has prompted buyers to cover, easing the upward fightback.

• The direction remains skewed to the downside and any rebound could attract the bulls’ attention.

• 4450 is the next obstacle to clear for a potential pop below 4400.

• On the upside, 4525 and then 4600 is a fresh target for gold to get back on track.

USDCHF jumps higher

The US dollar jumped across the board as latest speech by the Fed Chair Warsh signaled a very hawkish tone.

• A elevated price action changed buyer’s portfolios as the pair settled at the 0.8100 area.

• Trend followers are likely to be waiting to sell into strength and 0.8140 would be the first area to look for resistance.

• 0.8060 is the closest support to see if prices will test the recent bottom at 0.8000 again.

EURGBP tests key support

The Euro hits a double bottom after moving over 50 pips last Friday.

• After a bit of hesitation, a convincing resistance zone around 0.8585 has seen bulls pull back.

• The said zone is now a key hurdle as its breach could help bulls take over the short-term direction.

• 0.8550 and then 0.8535 at the start of the latest breakout is the first support in case the bear rally continues.