Forex Trading Library

Intraday Market Analysis – USD bounces higher

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EURUSD breaks demand zone

The US dollar surged over fewer jobless claims last week. A fall below 1.0200 has weighed on sentiment, invalidating the latest bounce. The former support has turned into a resistance. The euro’s failure to hold above the previous consolidation area at 1.0120 suggests that the directional bias is still down. The RSI’s oversold condition may attract some bargain hunters, but buyers need to clear 1.0200 before the pair could get back on track. 1.0030 is the next support and a breach could trigger momentum selling below parity.

USDJPY continues to recover

The Japanese yen softened as July’s core CPI was in line with expectations. A break above this month’s high at 135.50 indicates renewed interest in the US dollar. As the uptrend remains intact in the medium-term, the bulls may look for opportunities to accumulate. An extended recovery could pave the way for a trend continuation. 137.40 at the start of a sell-off in late July is an important resistance. Its breach may carry the pair to the recent peak at 139.40. On the downside, 134.80 is the first support in case of a pullback.

NAS 100 consolidates gains

The Nasdaq 100 consolidates as the Fed stays committed to raising rates to rein in inflation. The market mood further improved after a close above last May’s high at 13500. However, the RSI has edged again into the overbought zone on the daily chart and suggests that the bull run could use some breathing room. The index is consolidating its gains above 13280 which coincides with the 20-day moving average. Buying interest could be expected in this congestion area. A rally above 13700 could lift offers towards 14200.

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