EURGBP tests resistance
The euro advances as traders price in a 50-bps ECB hike next week. The pair’s third attempt at 0.8860 since late March shows strong buying interests especially when it is supported by a series of higher lows. A bullish breakout would send the single currency to 0.8890 at the origin of the mid-March sell-off where a breach could open the door to an extended rally above the daily double top around 0.8920. As the RSI ventures into the overbought area, 0.8830 is the first level to expect follow-up buying in case of a retracement.
XAUUSD seeks support
Gold inched higher as the US dollar fell across the board amid thin demand. The price continues to retreat from March 2022’s peak near 2050 while the daily RSI drops back to the neutral area. It would be too soon to call it a bearish reversal as there are multiple layers of support including 1975 and the daily level of 1950. The correction is likely to be driven by profit-taking as bullion approaches the all-time high and the price could be merely probing for support before another leg up. 2015 is the first resistance in case of a bounce.
US 30 grinds support
The Dow Jones 30 steadies as investors await high-profile earnings this week. The price has met strong supply around this year’s highs of 34100-34300 and a slide below 33800 has prompted short-term buyers to trim their exposure. Still, sentiment remains upbeat from the medium-term’s perspective after a sharp recovery from the March lows (31500). The index is testing 33580 at the confluence of the former March high and the 20-day SMA. A rebound will need to lift 33950 before it could signal a bullish continuation.
