Forex Trading Library

Intraday Market Analysis – USD in Limited Pullback

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USDCHF tests double top


The US dollar held onto recent gains as December’s core PCE beat expectations. The rally sped up after it broke above the major supply area around 0.9280. Strong bullish momentum suggests sellers have run for the exit.

The pair is now testing the double top (0.9360) from the daily chart. A breakout could trigger an extended rally above 0.9500 down the road.

In the meantime, the RSI recovered from the overbought area after the price went parabolic. The rally may take a breather and 0.9240 would be the first support.

XAGUSD grinds key floor


Silver struggles as the US dollar index surges to a seven-month high. A fall below the daily support at 22.80 indicates a lack of buying interest. As short-term bulls close their bets, sentiment is inching towards bearish territory.

The January low and psychological level of 22.00 is an important test of buyers’ resolve. The RSI’s oversold situation has attracted some bargain hunters.

Intraday traders taking profit may also drive the price up. But unless the metal rallies above 22.80 to attempt a rebound, 21.50 could be the next stop.

UK 100 seeks support


The FTSE 100 whipsawed ahead of the BoE meeting this week. The index hit resistance at 7600 right under the previous peak.

Following the January liquidation, the bears could take over if the price action fails to achieve a new high. 7330 is the first support after the latest rebound lifted the RSI into the overbought zone.

Further down, 7240 is a major demand zone from the daily chart and its breach would invalidate the current recovery. On the upside, only a rise above 7600 could get the rally back on track.

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