AUDUSD seeks support

The Australian dollar weakened after the CPI fell short of expectations in Q2. A rally above the supply zone around 0.6960 forced more sellers to cover their bets and took the heat off the aussie. 0.6980 is the immediate resistance and a bullish breakout could extend the rally above the daily resistance at 0.7060. But first, the pair needs to consolidate its recent gains to build up momentum. 0.6880 is a fresh support. Further down, 0.6800 at the base of the breakout is a key level to keep the current rebound intact.

GBPUSD tests support

Sterling struggles as the market bets on a cautious 25 bp rate hike by the BoE at its next meeting. Sentiment remains downbeat and the bears may see rebounds as opportunities to sell. The latest one came to a halt in the supply area (1.2100) which coincides with the 30-day moving average. A bullish breakout could trigger momentum buying and send the pair to the daily resistance at 1.2300. A pullback may bring the price to 1.1920, the first level to gauge buyers’ resolve. A deeper correction would make the pound revisit 1.1770.

XAUUSD drifts lower

Gold stalls as the US dollar climbs back across the board. The bulls are striving to keep the price afloat as bullion hits last year’s lows at 1680. After the RSI hit oversold, the latest surge seems to come from profit-taking as the bears get out of a directional trade. The precious metal met its first resistance at 1745 which lies on the 20-day moving average. The bulls will need to push past this key hurdle before a recovery could gain a foothold. Otherwise, gold could be vulnerable to a new round of sell-off below 1600.

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