Home / Blog / Market Analysis / Charts of the Week: Gold bounces back strong; can the Aussie Dollar recover despite rate cut speculations?

Charts of the Week: Gold bounces back strong; can the Aussie Dollar recover despite rate cut speculations?

Market Analysis /
02 Jul 2019

AUDUSD benefited slightly from the positive outcome of the G20 meeting, but the increasing prospect of interest rate cuts in Australia are preventing a stronger recovery rally. Traders will be keeping a close eye on the 200 MA, which is around 0.71 at the moment, for signs if the Aussie Dollar can recover on the back of improving sentiment in global markets. To the downside, a break back below the 0.6920-40 area could potentially be seen by traders as a sign that the downtrend will resume.

AUDUSD
AUDUSD

Gold was hit hard at the Sunday Open and fell briefly below $1380. The precious metal has recovered since then, and has cleared resistance between $1398 and $1402. Momentum remains relatively strong, and Gold bulls are targeting the previous high of $1439. The focus is clearly on the US Dollar, and as long as rate expectations are falling, Gold has the potential to extend its uptrend.

XAUUSD
XAUUSD

USDJPY started strongly into the new trading week, but is struggling as the weak US rate expectations continue to weigh on the currency pair. It recently fell below the 21 DMA, and a break below the 108 figure could potentially lead to further position covering. The key level to watch to the downside is 107.20 and 106.80.

USDJPY
USDJPY

EURCHF is slowly picking momentum as risk appetite is improving. The currency pair is currently testing the 21 DMA and the next bull target above that line would be the 200 DMA around 1.1315. Positive RSI divergence is seen on the Daily chart, which gives CHF bears some additional confidence.

EURCHF
EURCHF

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

More on this topic

See More News

Open your account. Apply in minutes.

Start your trading journey with a trusted, regulated, multi-award winning broker.

Open Account Try a Free Demo