Intraday Market Analysis – Gold Finds Support

June 7, 2021

XAUUSD grinds short-term resistance

Gold is recouping recent losses as the US dollar dips on unconvincing jobs data.

The price has met strong buying interest at the key support at 1855, which lies near the 20-day moving average. The V-shaped recovery is likely to meet resistance below 1910. An overbought RSI could prompt short-term players to take profit.

Bullish sentiment remains unchallenged from the daily chart’s perspective despite short-term volatility. A bullish breakout could resume the rally towards 1950.

EURCAD bounces from demand zone

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The Canadian dollar slipped after the unemployment rate rose to 8.2% in May.

The euro has so far been capped by the 30-day moving average on the daily chart.

From an intraday point of view, the pair has established a support base around 1.4640-1.4660, after a lengthy consolidation. The sellers’ struggle to reach lower could be a sign of exhaustion, which may attract early buyers in the hope of a reversal.

A rally above 1.4750 could challenge the major supply area at 1.4820.

SPX 500 rallies to previous peak

The S&P 500 rallied after mixed US nonfarm payrolls tempered reflation fears.

The short-lived correction saw solid bids at 4165, the base of a previous rally.

Bullish momentum above the immediate resistance of 4125 is an indication that the short side has rushed to cover their bets. 4245 is a critical resistance and its breach could propel the index to a new record high.

The RSI has ventured into the overbought area. A temporary pullback is likely to look for support above 4185.

By Orbex