Forex Trading Library

Intraday Market Analysis – Risk Currencies Rebound

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USDCHF struggles to bounce

The Swiss franc rallied on stronger-than-expected Q1 GDP. The pair has given up over half of its gains from the April rally as traders moved away from the greenback. Profit-taking and a lack of follow-up bids could further depress the price action. The psychological level of 0.9500 may attract some bargain hunters. But a bearish breakout would send the pair to 0.9430. On the upside, 0.9640 is the immediate resistance. The bulls will need to clear the support-turned-resistance at 0.9720 before a rebound could happen.

AUDUSD tests major resistance

The Australian dollar consolidates its gains as GDP growth beats expectations in Q1. The rebound gained further traction after it cleared the congestion area around 0.7120. The aussie is heading to May’s high at 0.7260, a major hurdle from the daily chart. Stiff selling pressure could be expected from intraday profit-taking and trend followers’ fresh offers. However, its breach could flush out the remaining selling interests and lay the foundation for a bullish reversal. 0.7100 is the first support in case of a pullback.

CADJPY gains momentum

The Canadian dollar popped higher after upbeat GDP in March. The pair could be coming out of a five-week long consolidation after it bounced off the demand zone (98.00) on the daily chart. A break above the previous high at 101.00 has prompted sellers to cover, leaving 102.40 as the next resistance. The RSI’s overbought condition may cause a limited pullback and the bulls could be waiting to accumulate at a discount. The psychological level of 100.00 at the base of the latest rally is a key support.

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