Intraday Market Analysis – The Euro Attempts to Bounce

EURUSD tests support

The euro steadied after the ECB signaled it would reduce its bond-buying under PEPP.

The pair is looking for support after it met strong selling pressure at the daily resistance near 1.1900. An oversold RSI has attracted buying interest as the price tests the support at 1.1800.

A rebound above the double top (1.1900) would put the single currency back on track and extend the rally to 1.1970.

A close below said support would deepen the correction to 1.1740 at the origin of the late August breakout.

US 30 struggles to rebound

The Dow Jones 30 recoups losses over new low jobless claims. Price action’s struggle near the top at 35630 suggests a lack of commitment for a new high.

The subsequent drop below the consolidation range (35200) has prompted short-term buyers to take the exit. However, an oversold RSI has drawn a buy-the-dips crowd.

After a bounce above 35150, the index will need to clear 35400 before the rally could resume. 34600 is critical support on the daily chart to keep the bullish bias valid.

USOIL consolidates gains

WTI crude tumbled after the EIA reported only a slight decrease in stockpiles.

Sentiment has shifted to the bullish side after a recovery above the daily resistance at 69.50. The sideways action has allowed buyers to hold onto recent gains.

The RSI’s double-dip in the oversold area has soaked up bids with 67.20 as fresh support.

If the bulls succeed in lifting the hurdle at 70.50, 74.10 could be the next target when momentum makes its return. 65.40 would be the second line of defense in case of a pullback.