XAUUSD tests critical support
Gold continues its choppy stance after hitting a firm rejection at 2530, indicating a potential gold breakout scenario. On the chart, the direction is slightly skewed as the precious metal is struggling to secure a footing. The price is testing the base of the recent rally around the psychological level of 2500. This is a critical floor to keep the rebound valid, as a bearish gold breakout would trigger a deeper correction to 2440. 2515 is the immediate resistance to lift to give the Bulls a fighting chance to hit another record.
GBPUSD struggles to bounce
Cable turned lower after the US economy showed an uptick last month. The pair found resistance at the recent high at 1.3250, a significant level on the daily chart, as trend followers look to sustain the rally. As the pair revisits the floor at 1.3100, the RSI’s oversold status might attract traders looking to buy the dip, but unless they succeed in lifting 1.3150, the sell-off could continue as the greenback looks to gain momentum into this week.
NAS 100 hits failure swing
The Nasdaq 100 whipsawed as traders look towards the next Fed meeting. A drop below 19800 has put short-term bulls on the defensive, triggering profit-taking. The recent downturn almost coincides with the psychological level of 19000, making it a vital level to expect follow-through bids should the uptrend stay intact. A bearish breakout would cause a new round of liquidation and send the index to 18200. The bulls will need to clear 2000 to regain control and lift the index back into record territory.