Intraday Market Analysis – USD Tries To Recoup Losses, Tuesday, Dec. 6

Pixabay

GBPUSD pulls back

The US dollar held its ground after service PMI remained resilient. The pair is striving to hold onto its gains after breaking above August’s high of 1.2300. As more bears cover their positions, they may switch sides and help push towards 1.2600. The RSI’s overbought condition on the hourly chart has temporarily limited the upside and intraday buyers’ profit-taking could offer Sterling some breathing room. 1.2110 over the top of the previous range is the first support and 1.1900 on the 20-day moving average is a critical level.

XAUUSD struggles for support

Gold fell back after strong US economic data boosted the dollar. A tentative close above last summer’s peak of 1803 is a sign of improved sentiment. This has put the bears on the defensive and eased the downward pressure in the medium-term. However, the price needs to consolidate its range after a break above the previous high of 1783. The rally would remain intact as long as bullion stays above the floor at 1750. A bounce would need to lift offers at 1783 then 1810 before the precious metal could regain traction.

GER 40 tests major resistance

Equities hesitate as robust US economic activity fans fears of more rate hikes. The Dax 40 is testing last June’s peak of 14650, a liquidation point from a botched rebound last summer. This is a major ceiling which means that index is at a crossroads between a bullish recovery and a bearish reversal. A breakout could pave the way for a rally towards 15500, reinforcing hopes of a continuation of the uptrend. An overbought RSI on the daily chart shows exhaustion and 14330 on the 20-day moving average is the first support.


More By This Author:

How Far Can Gold Rally?
DXY Primary Triple Zigzag To Hit 101.59
Intraday Market Analysis – USD Tests Resistance

Disclaimer: Orbex LIMITED is a fully licensed and Regulated Cyprus Investment Firm (CIF) governed and supervised by the Cyprus Securities and Exchange Commission (CySEC) (License Number 124/10). ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Beating Buffett 1 month ago Member's comment

Let it go, markets rightfully so sold off Monday, long overdue, rest assured we ain't seen nothing yet 😈 $dia $qqq $spy 🐻❤