Forex Trading Library

Intraday Market Analysis – USD consolidates gains

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USDCHF seeks support

The US dollar bounces higher fuelled by expectations of a supersized rate hike after record high inflation. A short-lived pullback has met solid buying interest over 0.9750. A pop back above the recent high at 0.9850 confirms that the bulls are still in control of the direction. A bullish MA cross suggests an acceleration to the upside and could attract more bids in the process. Above 0.9880, the origin of the June liquidation at 0.9950 could be next, which would complete the W-pattern on the daily chart. 0.9790 is the first support.

AUDUSD stays in downtrend

The Australian dollar found some support after the unemployment rate dropped to 3.5% in June. The RSI’s oversold situation caused a brief rebound but the price action remains under pressure after it failed to hold onto 0.6770. The bearish inertia may continue to attract trend followers and 0.6650 would be the next target after momentum pushed below 0.6710. On the upside, the support-turned-resistance at 0.6810 is the first to clear to ease the pressure and 0.6870 a major hurdle before a recovery could take place.

NAS 100 tests key support

The Nasdaq 100 consolidates as investors assess second-quarter earnings. The index came to a halt at 12200 and a bearish RSI divergence showed a loss of momentum in that key supply zone. A drop below 11700 could be a confirmation that the bias remains down, putting buyers on the defensive. 11500 is a key level to keep the price action afloat. Its breach may send it to the daily support at 10500, where it could be vulnerable to a new round of sell-off. 11900 is a key hurdle to lift before a rebound could gain a foothold.

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