Forex Trading Library

Intraday Market Analysis – USD awaits further catalyst

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AUDUSD struggles to bounce

The Australian dollar struggles over downbeat inflation expectations. The downtrend accelerated after the aussie cut through the demand area around 0.6400. An oversold RSI caused a rebound as intraday traders started to take profit. Still, the directional bias remains down and the bears could be waiting to double down at a better price. 0.6340 is the first hurdle and 0.6430 a congestion area from the previous brief consolidation. On the downside, a fall below 0.6200 would open the door to April 2020’s low at 0.6000.

USDJPY climbs along trendline

The US dollar steadied after the Fed minutes showed some consideration to the recession risk. The rally gained momentum after the greenback cleared the peak at 145.80. The rising trendline confirms that the uptrend has resumed. A lack of selling would carry the pair to its 24-year high at 147.50. As the RSI shot into the overbought zone, the dollar could use some breathing room. The psychological level of 146.00 on the trendline is the first support and 145.40 at the base of the breakout the bulls’ second line of defence.

UK 100 tests critical floor

The FTSE 100 fell due to the spillover of the UK gilt market’s liquidity crisis. The index came under pressure at 7100 on the 20-day moving average. A lack of follow-up support indicates that the bearish mood still prevails and the bulls are wary of a dead cat bounce. They will need to lift 7000 to retain some foothold. On the downside, 6800 is a critical bottom not only from the latest bounce but also last March’s lows. A breakout could trigger momentum selling to 6620 and signal a bearish market in the medium-term.

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