Intraday Analysis – Gold Holds Ground Despite Some Weakness


AUDUSD seeks support


Chart of AUDUSD

The Australian dollar inches higher over accelerating inflation expectations. The selling pressure has eased after the pair cleared the support-turned-resistance at 0.6720. Then a pop above the April high of 0.6800 has prompted more sellers to cover their positions. A close back above 0.6820 would send the pair to 0.6920. The base of the latest momentum at 0.6750 is a fresh support as the aussie consolidates its latest gains. 0.6700 along the 20 and 30-day SMAs is an important support to keep the momentum current intact.


XAUUSD tests resistance

Chart of XAUUSD

Gold weakens as easing US inflation raises hopes for a pause in the Fed’s rate hikes. On the daily chart, the price is seeking to consolidate its gains after a tentative close above August 2020’s peak of 2075. A shooting star pattern showed hesitation in keeping bids at the all-time high level. Zooming into the hourly chart, a drop below the first support of 2010 has dented the impetus, causing some short-term buyers to take profit. 1980 at the base of the recent rally is a critical floor. A close back above 2055 would resume the rally.


USOIL struggles to bounce

Chart of USOIL

WTI crude slides as a surprise rise in US inventory raises concerns of soft demand. A bearish MA cross on the daily chart is a sign of strong selling interests as the price gave up its recent gains. A long candle wick below the daily support of 65.50 indicated a rejection of the downside after an oversold RSI triggered a ‘buy-the-dips’ behavior. The supply zone around 75.50 is where the bears would sell into strength due to downward inertia. A fall below 71.00 would expose 65.50 once again, potentially extending losses to 60.00.

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