Forex Trading Library

Intraday Market Analysis – USD in temporary retreat

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NZDUSD tests resistance

The US dollar whipsawed as high inflation persisted in September. On the daily chart, the pair has taken a breather after the RSI went deeply into the oversold area. Sellers’ profit-taking would not be enough to lift the kiwi in a meaningful manner. Stiff pressure could be expected near the support-turned-resistance at 0.5700 which sits on the 20-day moving average, making it a congestion area. Sentiment would turn around only if 0.5810 is out of the way. On the downside, March 2020’s low at 0.5500 is a critical floor.

XAGUSD seeks support

Silver steadies as the greenback consolidates across the board. The price has been struggling to consolidate its latest gains after meeting strong selling interest in the supply zone around 21.00. The precious metal is at a crossroads as it falls back to the origin of the rally at 18.50. The bulls may find relief in a bounce above 19.60. That would bring back the fading optimism and pave the way for a recovery to 20.50. A bearish breakout, however, would invalidate the rally and extend losses below the daily support at 18.00.

SPX 500 recoups losses

The S&P 500 shot up as a hot CPI reading had previously been priced in. The index has given up all previous gains after it came to a halt at 3800. The supply area may have been the last chance to get out for those who bought the dips last summer. This also means that there could be more room on the downside. In the meantime, 3500 at the base of a bullish breakout in November 2020 saw an inflow of buying interests. A pop above 3630 may prompt more intraday sellers to cover and 3730 is the next resistance.

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