Intraday Market Analysis – Gold Breaks Lower.
XAUUSD lacks support
Gold slumps due to rising US Treasury yields. The demand zone around 1745 has failed to contain the market’s pessimism.
The latest bounce has been an opportunity to sell into strength, reinforcing the bearish bias. A combination of loss-cutting and fresh selling would raise the downward momentum.
The precious metal is heading towards 1720. A breakout would trigger an extended sell-off to the August low at 1680. The bulls have the daunting task of lifting 1760 before they could expect a meaningful rebound.
AUDUSD hits resistance
The Australian dollar inched higher after a smaller contraction in August’s retail sales.
The pair has found strong support at 0.7220. Three consecutive tests are an indication of solid interest in keeping the Aussie afloat.
0.7320 is the first resistance ahead. Its breach may shake the sellers out and trigger a rebound to 0.7410.
Otherwise, a fall below the said support would cause a deeper correction to the critical level of 0.7105. Erasing all of the gains from late August would seriously dent buyers’ optimism for a rally.
USDCAD bounces off support
The Canadian dollar is under pressure as oil prices retreat. The pair saw buying interest at 1.2600, which is major support for a four-month-long rally on the daily timeframe.
The RSI’s bullish divergence indicates that the selling pressure may have waned.
A break above the immediate resistance (1.2670) would prompt sellers to cover. 1.2800 near September’s peak could be the target should a rebound gain traction.
On the downside, a bearish breakout may send the price to the psychological level of 1.2500.
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