AUDUSD consolidates gains

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The Australian dollar steadies as inflation expectations beat estimates. After the pair found support over 0.6270, a lack of new lows suggests the sell-off has lost steam. Then a close above the major supply area 0.6520 may have reversed the situation by putting the bears on the defensive. The RSI’s double top may cause a pullback as momentum buyers take profit. 0.6400 is the first support and 0.6340 a key level to keep buyers interested. A bounce back above 0.6520 would extend the recovery towards 0.6650.
 

XAUUSD tests key resistance

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Bullion pulls lower as traders reposition ahead of US inflation data. The price has recouped losses from the October sell-off and is now retesting the daily resistance at 1730. A break above this ceiling could relieve the bearish pressure in the weeks to come and send gold to 1800. Until then, a strong cap could be expected from a mix of profit-taking and fresh selling. The RSI’s overbought condition might temper the enthusiasm and 1680 is the closest support in case the precious metal starts to take a breather.
 

USOIL struggles for support

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WTI crude plunges over a buildup in US storage. The price turned south after it met stiff selling at the October high of 93.50. A fall below the psychological level of 90.00 has forced some leveraged positions to liquidate. An invalidation of 88.00 is more worrisome as it indicates a lack of follow-up bids. 84.50 is the last support to gauge the bulls’ commitment. A bearish breakout would deepen the correction towards 81.00. 88.50 is a fresh resistance and the bulls will need to reclaim 91.50 before they could turn things around.

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