Intraday Market Analysis – XAU holds onto gains

[PocketOption]

Intraday Market Analysis - XAU holds onto gains

GBPUSD seeks support

The pound struggles as market sentiment remains cautious with thin liquidity. The pair is still looking to hold onto its gains after clearing last August's high of 1.2280. Even though short-term buyers have bailed out, the psychological level of 1.2000 has seen an inflow of buying interests.

But only a close above 1.2140 would signal confidence in Sterling and help turn the market mood around. 1.1190 is a critical level to keep the directional bias upward in the weeks to come, and its break could trigger a deeper correction.

XAUUSD grinds rising trend line

Bullion remains sideways as the US dollar attempts to claw back losses near year's end. On the daily chart, the price has been inching up along the 20-day moving average. A rising trend line from early November also offers support to the price action on the hourly time frame. A pop above the recent double top (1823) indicates a strong bullish pressure, but a bounce off the congestion area (1795) formed by the trend line and the base of the bullish breakout is key in keeping the rally going, with 1850 as the next target.

USOIL tests key resistance

WTI crude steadies as  bans countries that abide by the Western price cap. On the daily chart, the commodity would remain in a downtrend unless it manages to break free of 82.00. A bearish RSI divergence suggests slowing momentum as the price tests this major supply area. The resistance-turned-support at 77.00 is the level to assess the strength of follow-through. Its break would make the price vulnerable to a new round of sell-off, possibly towards the recent low and psychological level of 70.00.

The post Intraday Market Analysis - XAU holds onto gains appeared first on Orbex Forex Trading Blog.

Source: Intraday Market Analysis - XAU holds onto gains