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Daily Technical Insights 6 September 2022



GBPUSD saw a large trading volume as the British government announces its latest Prime Minister. Liz Truss from the Conservative Party has been elected as Boris Johnson leaves office. Prime Minister Liz Truss’ hawkish reputation soon provided an upward boost to Cable and allowed the pair to erase most of its intra-day losses. Cable touched its lowest level since March 2020 during the Asia trading session, but the pair bounced back to above 1.15 during the American trading session. It remains to be seen whether Prime Minister Truss will be able to pull Britain out of one of the worst inflationary environments Britain has seen in recent decades.

On the technical side, GBPUSD bounced back from its intraday low of 1.14511 but we do observe 1.1463 as the pair’s near-term support. Near-term resistance sits around the 1.1561 and 1.1854 price regions. RSI for the pair sits at 53.58, as of writing. On the daily chart, GBPUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.1561, 1.1854

Support: 1.1463


EURUSD plunged at the start of the new trading week. The Euro-Dollar pair met strong selling pressure as global market sentiment soured. The Euro was weakened significantly against the Dollar as Russia’s Gazprom halted gas flows to Europe via Nordstream 1 as the oil conglomerate cited leakage issues with the pipeline. Further energy supply shocks within the European region will only pose more downside pressure on the shared currency. U.S. markets are closed on the 5th due to Labor Day. U.S. ISM non-manufacturing PMI will be released during today’s American trading session.

On the technical side, EURUSD has found support around the 0.9902 price region. The Dollar parity remains a strong resistance for EURUSD. RSI for the pair sits at 42.72, as of writing. On the daily chart, EURUSD currently trades below its 50, 100, and 200-day SMA.

Resistance:  1.0033, 1.0055, 1.0082

Support: 0.9902


Gold enjoyed a modest gain during last Friday’s trading as the U.S. reported 315K nonfarm payrolls added in August. Despite the figure is lower than the previous month’s figure, August hiring still came in above consensus estimates. The narrative surrounding the FOMC’s next interest rate decision has been skewed towards a 75 basis point interest rate hike, thus the non-yielding gold will continue to struggle against the U.S. Greenback without volatility heightening news events.

On the technical side, XAUUSD has found short-term support around the $1695 per ounce price region but long-term support for the precious metal sits at a lower $1688.129 per ounce price region. RSI for XAUUSD sits at 37.53, as of writing. On the daily chart, XAUUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1762, 1800

Support: 1688.129, 1695