Intraday Market Analysis – Gold Looks For Rebound Catalyst

XAUUSD tests critical daily support

XAUUSD

The US dollar catching its breath offers bullions some respite.

Gold is now hovering above May’s low at 1760, an important support from the daily chart. Its breach could invalid the rally from late March.

The bullish RSI divergence indicates that the sell-off may have lost steam in this demand zone. A combination of profit-taking and fresh buying could help the metal recover.

A confirmation would be close above the psychological level of 1800, which would then convince buyers to join in.

USDCHF struggles on high ground

USDCHF

The US dollar softens, as Fed Chairman Jerome Powell insists on not raising interest rates too soon.

The pair has come under pressure near 0.9250, previously a support that has turned into a key resistance. The RSI divergence suggests a loss in the upward momentum and buyers may close out at the first sign of weakness.

0.9170 is the immediate support. Its breach could trigger a 100-pip fall to the next level at 0.9070. A rally above the said resistance may propel the price to above 0.9300.

NAS 100 grinds along bullish trendline

NAS100

The US tech index shrugged off inflation fear and recovered to an all-time high.

Price action has bounced off of the rising trendline established in late March. This is a strong bullish indication amid sell-offs across equity markets.

The RSI has returned to the neutral area, allowing buyers to accumulate without appearing to overdo it. The Nasdaq has broken above 14220 and may trigger a runaway rally towards 14400 as momentum players stake in. 14080 near the trendline is a key support to monitor.

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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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