Intraday Market Analysis – Gold Struggles To Find Floor.
XAUUSD stumbles below major supports
Gold dips as the US dollar strengthens ahead of this week’s FOMC.
The price has once again met strong selling pressure at the psychological level of 1900. The fall below 1870 then 1855 may have intensified the momentum as buyers rushed to get out.
A bearish MA cross suggests an acceleration to the downside. The RSI has recovered from an oversold condition and 1844 may be temporary support.
1820 would be the next target in case of another round of sell-off. A rebound is likely to see selling interest around 1884.
UKOIL rallies along MAs
Oil prices rallied after the IEA said global demand may return to pre-pandemic levels sooner than expected.
Brent crude continues to climb along rising moving averages. The rally has sped up after 71.30 turned from resistance into key support.
April 2019’s high at 75.50 would be the next target with little opposition ahead.
An overbought RSI may however lead to a brief pullback. The moving averages are the first line of support.
Otherwise, 71.80 would be a critical level to keep the short-term optimism intact.
GER 30 holds near new high
The Dax 30 hits a record high supported by the ECB’s accommodative monetary policy.
The index has bounced off the 20-day moving average, an indication that the bulls are still willing to commit more chips.
The latest consolidation on the hourly chart has found solid support above 15500. A new high above 15720 and a bullish MA cross could attract more trend followers with the psychological tag of 16000 as a target.
As the RSI drops back to the neutrality area, bids may be lurking around 15560.
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