Intraday Market Analysis – Gold Sell-Off Fades

By Orbex

XAUUSD tests resistance

Gold hit a speed bump after an upbeat ISM Services PMI boosted the dollar’s appeal.

The metal saw buying interest in the major demand zone around 1720. A bullish RSI divergence indicates a slowdown in the pace of the sell-off. The initial surge above 1745 could be due to profit-taking from the short side, a prerequisite for a reversal.

1775 is the main hurdle and its breach may lead to the psychological level of 1800. On the downside, the area between 1720 and 1740 is the floor to keep price action afloat.

AUDUSD attempts to rebound

The Australian dollar consolidated its gains after the RBA played down the rate-hike pressure.

The rally above 0.7250 has prompted short-term traders to take some chips off the table. However, the bulls will need to clear the main hurdle at 0.7310 before they could extend upward. The RSI’s double top in this congestion area may momentarily restrain their optimism.

In case of a pullback, 0.7190 is a key support to keep the rebound relevant. Failing that, the pair could tumble towards the daily support at 0.7120.

NAS 100 breaks key support

The Nasdaq 100 struggles as investors rotate out of growth stocks amid an uncertain outlook.

The break below last July’s low (14450) has pushed the index into a deeper correction. A bearish MA cross on the daily chart points to a downgrade in market sentiment.

An oversold RSI has caused a temporary rebound, which would be an opportunity for trend followers to sell into strength. 14330 is the next support. Short-term traders who are brave enough to buy the dips must push through 14850 to secure a foothold.

Article by Orbex

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