Intraday Market Analysis – Gold Awaits Breakout

XAUUSD tests daily resistance


Gold consolidates recent gains ahead of the US jobs reports.

Traders are looking for direction after the metal recouped most losses from the August sell-off. 1832 is major resistance on the daily chart.

A bullish breakout may trigger an extended rally as the short side bails out. We can expect volatility with 1860 as a potential target. A fall below 1790 however would tip the balance to the downside.

1755 would be the first support in a retracement. In the meantime, an overbought RSI has led intraday buyers to take profit.

EURGBP consolidates support


The euro inched higher after a drop in the unemployment rate across the eurozone in July.

The recovery has gained momentum after the pair cleared the daily resistance at 0.8555. The 20-day MA crossing the 30-day one suggests that sentiment may have turned around.

Following a short consolidation, the single currency has met buying interest along 0.8550 and then 0.85700.8610 is the next resistance and its breach could clear the path for a rally to the recent peak at 0.8660.

USOIL hits key resistance


WTI crude found support from the EIA’s report of a large reduction in US stockpiles. The V-shaped rebound is now testing the key hurdle on the daily timeframe (69.50).

An RSI divergence indicates a loss in the upward momentum. Short-term buyers have taken some chips off the table and caused a pullback. 67.00 is the immediate support.

A deeper retracement may send the price to 65.30. On the upside, a close above 69.50 may open the door to 73.00 and reverse an eight-week long correction.

About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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