Intraday Analysis - Wednesday, August 20

XAUUSD pushing higher

Gold (XAUUSD) had a day to remember after jumping over $100 in value.

• The yellow metal has secured a foothold around the psychological level of 4500, and a tentative break here would suggest further buying pressure.

• Prices need a decisive close above 4560 to flush out the remaining selling interests and extend the rebound.

• On the downside, 4455 is the immediate support, with 4380 a critical second layer.

USDJPY finds support

The US dollar steadies after plummeting against the Yen in yesterday’s session.

• The pair has hit support and formed a double bottom.

• 158.00 is the first support, and its breach would force leveraged long positions to close and trigger a deeper sell-off towards 157.30.

• As the RSI holds the lower oversold region, a bounce higher could develop.

• The target of 160.75 would be a crucial level for buyers to develop bullish sentiment.

USOIL remains bullish

WTI posted another weekly gain as concerns grow over the ongoing US-Iran conflcit.

• A break of the psychological level of 85.00 will show that the buy side continues to attract more buyers.

• The narrowing consolidation is due for a breakout, which will dictate the next directional move.

• The previous swing high of 87.50 is a major hurdle to overcome.

• 80.50 is the first support and the last stronghold to prevent a bearish continuation.