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GBPUSD battles 1.3540-35 key support ahead of UK PMIsGBPUSD keeps pullback from 200-DMA and 78.6% Fibonacci retracement (Fibo.) of September-December 2021 downside around a short-term crucial support convergence near 1.3540-35, including 100-DMA and 50% Fibo with eyes on monthly UK PMI data. That said, recently upbeat UK economics renews BOE rate hike concerns, which in turn could trigger the pair’s bounce from the stated support should today’s activity numbers arrive higher. The same could trigger recovery moves towards the 61.8% Fibonacci retracement level of 1.3630. However, the pair’s further advances will be challenged by the 200-DMA and 78.6% Fibo. level, respectively around 1.3730 and 1.3750. On the contrary, a downside break of 1.3535 will reassess the data and also need validation from the mid-November peak of 1.3513 before directing GBPUSD bears to the 50-DMA level of 1.3416. Should the cable pair sellers dominate past 1.3416, odds of witnessing further declines towards 23.6% Fibonacci retracement of 1.3335 can’t be ruled out.
by MTradingGlobal
GBPUSD must stay above 1.3555 to keep bulls on the tableGBPUSD keeps the 50-DMA breakout to battle the 100-DMA as traders await final readings of UK Services PMI for December, as well as the US ISM Services PMI for the said month. Although the key DMA breakout and bullish MACD hints at the cable pair’s further upside, a clear run-up beyond the 100-DMA level surrounding 1.3555 becomes necessary for the bulls to rise further towards the five-month-old resistance line and the 200-DMA, respectively around 1.3690 and 1.3740. Also challenging the pair buyers are the 50% and 61.8% Fibonacci retracement levels of July-December downside, close to 1.3570 and 1.3670 in that order. It’s worth noting that a failure to stay past 1.3555 could drag the quote back to November’s high near 1.3515 ahead of highlighting the 50-DMA level of 1.3400 for the GBPUSD sellers. Should the pair extend the south-run below 1.3400, the 23.6% Fibonacci retracement near 1.3350 may offer an intermediate halt during the fall targeting the year 2021 bottom of 1.3160. To sum up, GBPUSD bulls are at a test and the sellers may take the risk in case of pullback.
by MTradingGlobal
Gold sellers cheer bear cross, key support break below $1,800Despite bouncing off a four-week low, gold prices are vulnerable to further downside as sustained trading below the two-month-old support line, now resistance, joins the bearish cross-over of the 200-SMA to 50-DMA. That said, 78.6% Fibonacci retracement (Fibo.) of September-November upside, near $1,755, may restrict short-term declines of the yellow metal ahead of September’s low near $1,721. It’s worth noting that a clear downside break of the $1,721 needs validation from the $1,717 level before challenging the $1,700 threshold. Meanwhile, gold traders are consolidating the previous day’s losses ahead of the key US ISM Manufacturing PMI and ADP Employment Change data, not to forget Fed Chair Powell’s testimony. Should the US catalysts join anxiety over Omicron to weigh on risk catalysts and the US dollar, gold prices can extend the latest corrective pullback towards the previous support line near $1,787. However, a five-week-old horizontal area surrounding $1,810 will be a tough nut to crack for the gold buyers afterward.
OANDA:XAUUSDShort
by MTradingGlobal
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Key SMA confluence probes gold buyers below $1,800Gold prints four-day uptrend, tracking monthly support line amid early Friday. However, a convergence of the 100 and 200-DMAs near $1,795 offers a tough nut to crack for the bulls. Should the quote rise past $1,795, the mid-September peak near $1,809 may offer an intermediate halt during the run-up targeting the $1,834 crucial resistance, marked twice in 2021. It’s worth noting that the latest inflation chatters underpin the US Treasury yields and may recall the US dollar bulls should today’s PMIs for October arrive as strong, which in turn could pull the gold prices back from a strong resistance level. On the contrary, a downside break of the stated support line, around $1,778 by the press time, may need validation from $1,770 and June’s low near $1,750 to convince gold sellers. Following that, 23.6% Fibonacci retracement of June-August fall, near $1,733, could probe the fall targeting the $1,700 threshold and the yearly bottom surrounding $1,668. Overall, gold remains in the consolidation mode and needs confirmation for further upside.
OANDA:XAUUSD
by MTradingGlobal
EURUSD sellers cheer key support break before US ADP, PMIEURUSD extends the previous day’s downside break of an ascending support line from March 31 on early Thursday. In doing so, the currency pair prints the heaviest losses in over a week ahead of the key US ADP Employment Change and ISM Services PMI. Though, bullish MACD and upbeat RSI could trigger the quote’s bounce off 21-day SMA level of 1.2172, if not then April top near 1.2150 will be the next support to watch. It should, however, be noted that the pair’s south-run past-1.2150 will make it vulnerable to revisit the mid-May lows near 1.2050. It’s worth noting that the recovery moves from the current levels need strong data to support to cross the support-turned-resistance close to 1.2215. Also acting as the upside barrier is the weekly resistance line surrounding 1.2245 and the recently flashed multi-day top of 1.2265. Overall, EURUSD traders should wait for Friday’s US NFP even as the early signals suggest that the bullish momentum is fading.
by MTradingGlobal
AUDUSD eases from key hurdle after RBA, US PMI eyedAUDUSD bulls step back from a convergence of a three-week-old resistance line and 100-SMA following RBA’s hints to July action. The Aussie pair drops to 0.7735 before the European session amid cautious sentiment ahead of the US ISM Manufacturing PMI for May, expected to remain unchanged near 60.7 level. In addition to the 0.7760-65 resistance confluence, a six-week-old horizontal resistance near 0.7815-20 becomes the key hurdle that holds the gate for AUDUSD bulls. Meanwhile, the latest pullback eyes the 0.7700 round-figure before highlighting a two-month-long support region near 0.7670. Though, the pair’s weakness past 0.7670 will make it vulnerable to drop towards 0.7585 and April lows near 0.7540. Overall, AUDUSD consolidates April-May gains between 0.7670 and 0.7820 area.
Short
by MTradingGlobal