Intraday Market Analysis: Gold Resumes Bullish Bias.
XAUUSD surges past supply zone
Gold found bids after the China Gold Association said the country’s gold consumption surged 93.9% yoy in the first quarter. The price action has come under selling pressure around the psychological level of 1800, near the supply zone from last February’s sell-off point (1815).
The current rebound has originated from the previous resistance at 1756. The subsequent breakout above 1781 suggests that buyers have retained control of the direction. 1765 is a major support in case of a retracement to allow the RSI to cool off.
USDJPY tumbles from resistance
The US dollar gave up recent gains after the ISM Manufacturing PMI fell short of expectations. When the pair approached the resistance level at 109.70 the RSI’s double top in the overbought area was an indication of exhaustion.
The greenback then took a nosedive towards the immediate support at 108.70. A fall below this level would be seen as a short-term confirmation of the bearish MA cross from the daily chart.
Further down, 108.45 a former resistance would be the second line of defense to keep the price afloat.
EURCHF tests medium-term support
The euro inched higher after the block’s largest economy Germany’s retail sales grew by 11 % yoy in March. On the daily chart, the pair has been in a flag consolidation following its rally above 1.1050.
1.0960 is the lower band of the range and a key support to keep the uptrend in shape. The latest rebound is a sign of strong buying interest from this demand zone.
However, the bulls will need to lift offers at 1.1020 to reverse the short-term bearish bias. 1.1070 would be the next target should this happen.
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