Forex Trading Library

Intraday Analysis – USD still under pressure

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USDJPY struggles for support

Chart of USDJPY

The US dollar grinds lower as efforts to avert a banking crisis after the collapse of SVB cut short rate hike expectations. December’s highs around 138.00 have proven to be a tough hurdle to lift. A subsequent break below 135.60 triggered a wave of sell-off and a combination of profit-taking and fresh selling compounds the amplitude of the liquidation. 132.50 is the next level to see if buyers would make a comeback. Failing that, 131.00 could be in the bears’ crosshairs. On the upside, 134.70 has turned into a fresh resistance.

EURGBP fails to rebound

Chart of EURGBP

The euro fell as the bloc’s bond yields tumbled in fear of a financial crisis. From the daily chart’s perspective, the pair is still inching up despite a choppy path. On the hourly chart, a break below 0.8825 continues to put intraday bulls on the defensive. The demand zone around 0.8790 at the origin of the March breakout rally is a major level to keep the directional bias up. Otherwise, a fall below the daily support of 0.8760 may cause a bearish reversal. 0.8850 is the first hurdle and only a close above 0.8890 would turn sentiment around.

SPX 500 tests critical support

Chart of US500

The S&P 500 whipsaws as investors struggle to find reassurance in US authorities’ emergency measures. A bearish MA cross on the daily chart suggests that the mood has remained cautious. Then a break below the daily support of 3935 came in as a confirmation, invalidating the latest rebound and turning it into a fresh resistance. The lower band of the December consolidation range around 3800 is the next support where the bulls might try to hold it together. Its breach could lead to a bearish continuation in the medium-term.

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