Forex Trading Library

Intraday Market Analysis – USD bounces back

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USDCHF attempts to rebound

The US dollar recovers supported by rising Treasury yields. A previous failure to clear the July peak at 0.9870 has put a halt to the dollar’s rally, possibly triggering a consolidation phase. The latest correction found support over 0.9480 while a bullish RSI divergence showed a loss of momentum in the sell-off. A follow-up break above 0.9620 is an encouraging sign but the bulls need to lift the former support at 0.9680 before a recovery could gain traction. Otherwise, the greenback may slide to the daily support at 0.9400.

AUDUSD tests major support

The Australian dollar struggles as August’s unemployment rate shows an uptick. The bounce hit resistance at 0.6910 over the 30-day moving average. A steep drop is a sign of liquidation and a lack of commitment from the buy side. The RSI’s oversold condition has led to some buying in the demand area near July’s lows (0.6680). If the pair fails to hold onto this critical level, a bearish breakout would extend losses to 0.6500 and resume the downtrend in the medium-term. The support-turned-resistance at 0.6830 is a fresh hurdle.

NAS 100 breaks lower

The Nasdaq 100 tumbles as investors brace for an aggressive move by the Fed next week. The recent rally came under pressure at the origin of a sell-off in late August (12850) which coincides with the 30-day moving average. The sharp liquidation suggests that the mood has swung back to the fragile side. A breach below the psychological level of 12000 shows that the path of least resistance is down. Then July’s lows near 11400 would be the bulls’ last stronghold. 12100 is the first resistance in case of a bounce.

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