Forex Trading Library

Intraday Market Analysis – EUR Bounces Back

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EURUSD breaks resistance

The euro surged after ECB President Lagarde signalled a rate hike by September. Strong bullish momentum above the daily resistance at 1.0630 indicates that the bears are rushing to unwind their bets in a crowded directional trade. Momentum buying from breakout traders has pushed the RSI into a triple top in the overbought zone. The euro might finally have a chance to reverse its course if there are enough follow-ups in the consolidation phase. 1.0590 is the closest support and 1.0780 the next target when volatility returns.

NZDJPY hits resistance

The New Zealand dollar retreated after disappointing retail sales in Q1. On the daily chart, the month-long correction found support at the 61.8% Fibonacci retracement level of the February rally, which coincides with the psychological level of 80.00. A series of profit-taking in this demand zone has weakened the selling pressure. 83.00 from the last leg of sell-off is a key hurdle and its breach would prompt more bears to cover, opening the door for a meaningful rebound. 81.40 is the first support in case of hesitation.

SPX 500 strives to rebound

Equities recovered after President Biden said he may lift tariffs on Chinese imports. A bullish RSI divergence suggests a loss of momentum in the latest downward push. A break above 3950 has led intraday sellers to take some chips off the table. However, trend followers are likely to sell into strength as sentiment remains cautious. The bulls need to lift offers around the previous high (4100) next to the 30-day moving average before they could turn things around. Below 3820, a new round of sell-off would send the S&P 500 to 3600.

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