Intraday Market Analysis – Testing Daily Support

USDCHF retreats to major support

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The US dollar is treading water as traders await inflation data which would dictate the next movement.

The greenback has fallen back to test the medium-term support (0.9210) from the daily chart after a three-month-long rally.

An RSI divergence right above the key level is a sign that the correction has lost its momentum. Though a bullish breakout above 0.9280 will be needed to confirm a reversal.

To the downside, a drop below the said support would trigger a new round of sell-off towards 0.9140.

XAUUSD looks for support

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Gold is striving to consolidate its latest gains after a fall in US yields last week. After having established a solid support base at 1677, the price has rallied back to March’s high at 1757.

A bullish breakout could lead to a sharp recovery as a result of triggering stop-losses and momentum buying.

But for now, an overbought RSI has prompted profit-taking within the supply area. 1730 is the first line of defense as the metal pulls back to rebuild support.

A deeper correction may lead to test 1710.

US 30 rises along the trendline

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The Dow Jones flies high after Chairman Jerome Powell expressed his optimism in an interview that the US economy was set for a strong rebound.

Following a breakout above its latest consolidation range (33250), the index has been grinding up along a rising trendline.

The psychological level of 33400 would be the next target for the bulls. Though an overshot RSI may lead to a temporary pullback.

The 30-hour moving average is the immediate support. Further down, 33510 along the trendline may see more buying interests.

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). ...

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