Forex Trading Library

Intraday Market Analysis – USD Hit by Profit-taking

0 505

NZDUSD tests resistance

The New Zealand dollar rallies over improved risk sentiment. The pair is grinding its way up to the key resistance (0.6560) on the daily chart. Short-term sellers have covered some positions, but renewed pressure could be expected from trend followers looking to fade the rebound. However, a bullish breakout could turn sentiment around and extend the rally to 0.6700. 0.6420 is the immediate support in case of a pullback. Further down, 0.6320 at the origin of an initial breakout would be a critical floor for the kiwi.

EURGBP grinds support

The pound finds support from the UK’s new fiscal package amid soaring energy prices. The pair is seeking to consolidate its recent gains after it rallied above 0.8530. 0.8480 at the base of the latest bullish momentum is a key support. 0.8430 is a second line of defence to keep sentiment upbeat. Its breach could invalidate the rebound and trigger a liquidation towards 0.8370. A close above the recent high at 0.8620 may attract momentum buyers and raise volatility. Then the euro’s rally would resume above 0.8700.

GER 40 heads towards key resistance

The Dax 40 climbs as investors hope that inflationary pressures have peaked. A recovery above May’s high at 14250 has forced short-term bears to cover their bets. 14600 would be the next target as more buyers make their way back to the auction. A break above this major hurdle could put the index back on track for a meaningful rebound. In the meantime, an overbought RSI may temporarily limit the upward movement. The resistance-turned-support at 14150 is the first level to gauge the underlying strength.

Test your strategy on how the GBP will fare! Open your Orbex Account and start trading now. 

Leave A Reply

Your email address will not be published.