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Intraday Market Analysis – USD hit by profit-taking

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USDCHF tests critical floor

The US dollar softened after the Fed raised rates by 75bp as expected. The medium-term direction still points to the upside but intraday price action may remain choppy. The pair has struggled to find bids and given up most of its gains from the rally in early July. 0.9550 is a key support near the base of the previous recovery. A bearish breakout would indicate that the path of least resistance is down. The pair would be vulnerable to a sell-off below 0.9500. 0.9670 is the resistance to clear before the greenback could stabilise.

USOIL struggles to recover

WTI crude bounces higher as US inventories show a larger-than-expected rise. The price is having a hard time holding onto its recent gains after it broke below last April’s low at 94.00. Sentiment has turned cautious as a series of lower lows forced more buyers to bail out. The latest rebound met stiff selling pressure at 104.00, a sign that sellers might have gained control. The bulls will need to lift the psychological level of 100.00 or 93.00 could be their last stronghold and its breach may extend losses below 88.00.

SPX 500 continues upward

The S&P 500 soared as the Fed dropped the dreadful option of a full percentage rate hike for now. From the daily chart’s perspective, the market mood is cautious at best. However, there might still be room for short-term rebounds. The index has consolidated its gains over 3910. A close above the psychological tag of 4000 could fuel momentum buying and send the price to the start of the June sell-off at 4100. As the RSI shot into overbought territory, the base of the breakout at 3980 is the first support in case of a retracement.

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