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Charts of the Week: Gold under renewed pressure; Canadian Dollar downtrend set to resume

Market Analysis /
Milan Cutkovic / 23 Mar 2020

XAUUSD had a strong rally on Friday following the bounce off the key $1445 support level, but lost momentum towards the end of the trading day. Traders are keeping a close eye on the $1555 level, which proved itself as a difficult obstacle before (August and September 2019 high). Gold bulls will need a clear break above that level for the rally to gain momentum. To the downside, support is seen between $1440 and $1450. A break below that area of support could signal that the correction may extend towards $1382.

While USDCAD does look overbought on the Daily and Weekly chart, there are no signs yet that the rally is about to end. With the Greenback bid across the board and the negative outlook for Oil prices, a recovery of the Canadian Dollar seems rather unlikely in the near-term. Traders will be keeping an eye on the area between 1.41 and 1.4120 for key support, while resistance is seen around 1.4450.

EURGBP managed to bounce off the key 0.90 support level, and the charts are suggesting the uptrend may resume soon. Immediate resistance is seen at 0.9225, and a break above that level could pave the way for a rally back towards the recent multi-year high at 0.9515.

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