Forex Trading Library

Intraday Market Analysis – US Dollar in correction mode

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USDCHF seeks support

The US dollar falls as GDP shows a 0.6% contraction last quarter. The pair is consolidating its gains after it rose above the double top at 0.9880. A slide below 0.9850 triggered profit-taking. Medium-term sentiment remains intact though and 0.9720 is the next level to gauge follow-up interest. The bulls may need to accumulate before they could take on 0.9900 and another double top (1.0040) on the daily chart. A close above this major ceiling would release the last bit of selling pressure and extend the rally towards 1.2300.

EURJPY bounces off support

The euro climbed as German inflation shot up in September. The current correction has found support at the base (137.40) of a bullish breakout in late August. This may help the six-month long rally to stay valid. A rise above the psychological level of 140.00 has prompted some sellers to cover their bets, opening the door for a recovery to 143.50. Its breach may put the euro back on track and resume the rally above 144.00. As the RSI ventures into the overbought zone, 139.30 is the closest support in case of a pullback.

NAS 100 breaks critical support

The Nasdaq 100 slips as a resilient labour market supports the Fed’s aggressive hikes. A breach below June’s low at 11100 could send the index deeper into bearish territory. The price is testing November 2020’s low at 11000 but the psychological level of 10000 might be at stake. 11700 is the first hurdle ahead and the top of the previously failed rebound at 12070 a key level before short-term sentiment could turn around. The latter also coincides with the 30-day moving average where strong selling pressure could be expected.

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