XAUUSD bouncing back
Gold slide after upbeat GDP data came in higher than expected. However, the price seems to have secured a foothold around the psychological level of 2400, and a series of higher lows combined with a tentative break above 2360 suggest further buying pressure. However, the yellow metal needs a decisive close above 2425 at the last swing high to flush out the remaining selling interests and extend the rebound to 2460. On the downside, 2325 is the immediate support to keep momentum intact.
USDJPY finds support
The US dollar steadies after plummeting in recent sessions against the Yen. The pair has hit support at 152.00 from May’s liquidation and hit a double bottom in the process. A bearish divergence on the RSI suggests that further deceleration is still possible. 152.50 is the first support, and its breach would force leveraged long positions to close and trigger a deeper sell-off. 155.00 over the 20-day SMA would be a crucial level to expect buyers to return and keep the bullish bias intact.
USOIL remains bearish
WTI posted a third weekly decline as concerns are raised about China’s black gold demand. A bounce off the critical floor of 76.00 will need to break the psychological level of 80.00 to show that the buy side has not thrown in the towel yet. The narrowing consolidation is due for a breakout, which will dictate the next directional move. The previous swing high of 78.50 is a significant hurdle to lift before a sustained recovery. 75.00 is the first support, and 73.80 is the bulls’ last stronghold to prevent a bearish continuation.