Intraday Market Analysis – Gold Needs Catalyst

By Orbex

XAUUSD awaits breakout

Gold consolidates as traders await the Fed’s monetary policy update. The metal came under pressure after it erased all gains from the November rally.

Price action is stuck in a narrowing range between the daily support at 1760 and 1806. This indicates the market’s indecision.

A bearish breakout would confirm the bearish MA cross on the daily chart and trigger an extended sell-off towards the floor at 1680. On the upside, a rally would send the price to retest the previous peak at 1870.

GBPCAD rises towards key resistance

The pound bounced back after Britain showed strong wage growth in the three months to October.

A bullish RSI divergence indicated a loss of momentum in the latest sell-off. A break above 1.6770 and then a bullish MA cross were the confirmation for a reversal.

The pair is heading towards the daily resistance level at 1.7100. Its breach may lead to a broader rally in the medium term. In the meantime, an overbought RSI could temporarily limit the extension. 1.6900 is the closest support in case of a pullback.

USOIL seeks support

Oil prices struggled after the International Energy Agency said that the omicron strain may threaten global demand.

WTI crude is hovering under the 20-day moving average after the RSI briefly shot into the overbought territory. 74.10 near the 30-day moving average seems to be a tough nut to crack for now.

A bullish breakout would attract momentum buyers and send the price to the daily resistance at 79.00. Otherwise, 68.00 from the latest rally is the support to keep the rebound valid.

Article by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com