Forex Trading Library

Intraday Analysis – S&P 500 grinds major resistance

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NZDUSD tests support

Chart of NZDUSD

The New Zealand dollar fell after the Q1 data showed a clear slowdown in inflation. The pair is struggling to preserve its gains from the March rally with a drop below the base of the recent surge at 0.6180 suggesting that the path of least resistance might be down. A limited rebound came to a halt at 0.6220, turning it into a fresh supply zone. The bulls’ failure to push back would make the kiwi vulnerable to a broader sell-off. A break below 0.6150 may attract momentum sellers and send the pair past the March low of 0.6090.

USDCHF struggles for bids

Chart of USDCHF

The US dollar fell as rising jobless claims rekindled recession worries. This week’s rebound has struggled to conserve its momentum with the price turning lower at the psychological level of 0.9000. Medium-term sentiment has become downbeat following the breach of the daily support at 0.9080 and the bears are likely to sell into strength at rebounds. A fall below 0.8920 would reaffirm weakness and expose the greenback to another leg of decline past 0.8860 then towards January 2021’s lows around 0.8780.

US 500 seeks support

Chart of US500

The S&P 500 edged lower, dragged by Tesla’s earnings miss. The price is grinding a key supply zone 4170-4190 near this year’s peak. The choppy price action is a sign of hesitation as the bulls take some chips off the table. On the opposite side, offers could be expected from those looking to sell high and an initial break below 4125 may have given them an edge. 4090 on the 20-day SMA is a key level to keep the rally intact in the short-term and its breach may trigger a correction towards the psychological level of 4000.

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