Intraday Market Analysis – In Search Of Support

By Orbex

EURUSD pulls back to support

The euro popped higher after the Eurozone’s bond yields rose on improved sentiment. The pair maintained its recovery trajectory after it turned 1.1990 from resistance into support.

The euro has met strong selling pressure at March’s high at 1.2110 while the RSI shot into the overbought area.

The current retracement would test the demand zone between the psychological level of 1.2000 and 1.2045.

A rebound followed by a rally above 1.2110 would suggest a bullish continuation towards 1.2180.

NZDUSD rises above consolidation range

Risk sentiment makes its return at the start of the week driving higher the commodity-linked New Zealand dollar.

The pair has found strong support by the demand area above 0.7120. The current rebound is heading towards the key resistance (0.7270) from the daily chart.

A bullish breakout could end the two-month-long consolidation and put the kiwi back on track.

A rise above 0.7210 is the final confirmation for the bullish MA cross as the upward momentum accelerates. 0.7165 is the closest support in case of a retracement.

XAUUSD tests major support

Gold keeps the high ground as the US dollar index remains subdued near an eight-week low. Price action is currently sideways as buyers are trying to accumulate momentum after the latest series of higher highs.

The RSI has cooled down from the overbought zone. The area around 1764 and the rising trendline (1770) is important support on an hourly basis.

A rebound could propel the precious metal back to 1815.

On the downside, however, a drop to 1744 may extend the consolidation by shaking out weak hands.

By Orbex