By Orbex
XAUUSD rally slows down
Gold grinds higher as the US dollar softens amid lower Treasury yields.
The rally slowed as the bulls pushed towards the key resistance at 1824. A bullish breakout could trigger an extended rally and further confirm the reversal.
However, the RSI divergence may temper the enthusiasm. Its failure to follow the price and achieve a higher high is a warning sign of fading momentum.
1790 is the immediate support and its breach could send the price to 1775, where the precious metal first broke out of its bearish range.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
CADJPY recovers temporarily
The Canadian dollar bounces back after a fall in June’s unemployment rate.
The drop below 88.00, the origin of the previous rebound, has put the loonie back on the correction path.
The RSI’s double-dip into the oversold zone has prompted intraday players to take profit, momentarily driving up the price.
This may turn out to be a dead cat bounce as the pair tests the supply area around 88.80. A drop below 87.40 could lead to another round of sell-off towards the major demand zone around 86.50 on the daily chart.
UK 100 holds above daily support
The FTSE 100 recovers as lackluster GDP growth may keep the BOE off the hawkish path.
The index is in consolidation between the daily support at 6940 and 7200. As long as the bulls bid up the price above the support, the medium-term rally is still intact.
The current volatility is a sign of short-term turnover. After the RSI rose back from an oversold situation, price action found support at the psychological level of 7000.
7150 is the resistance ahead, a breakout could challenge the peak at 7200.
By Orbex
- The British index has updated the historical maximum. Oil lost 5% over the week May 3, 2024
- US Fed tilts towards a rate cut despite the postponement. HKMA left the rate unchanged at 5.75% May 2, 2024
- Brent crude oil hits seven-week low May 2, 2024
- Target Thursdays: USDJPY, Copper & EURCAD May 2, 2024
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024