Intraday Market Analysis – USD Struggles for Buyers
USDJPY sees little upside
The Japanese yen may find support from an acceleration in November’s Tokyo CPI. A bearish MA cross on the daily chart indicates an acceleration to the downside. A brief bounce has met stiff selling pressure at 142.20. Both the psychological level of 140.00 and the previous low at 138.50 have failed to contain the bearish push. This is a strong sign that buyers have stood on the sidelines and the pair could be vulnerable to a decline to 137.00. In the meantime, an oversold RSI may cause a limited recovery towards 140.00.
EURNZD struggles for bids
The New Zealand dollar stays ahead after a jump in the Q3 retail sales. On the daily chart, the euro has retraced more than half of its rally from August. After a short-lived consolidation, a break below 1.6750 has further put the buy side under pressure. 1.6560 is the next level to see whether buyers would step in. 1.6790 is the first hurdle should this happen and then 1.6900 is a critical resistance to lift before the single currency could make up lost ground. Otherwise, a renewed sell-off would extend losses below 1.6400.
XAGUSD attempts to break higher
Silver advances as the FOMC minutes suggest a slower pace of rate hikes. The rally first came to a halt between the psychological level of 22.00 and June’s high of 22.50. But the pullback found support over an area of confluence next to last October’s peak (21.10) and the 20-day moving average (20.60). A series of higher lows suggests increasing buying pressure. A close above 22.00 could attract momentum buyers and push the precious metal towards 23.30. On the downside, 21.10 is the immediate support.