Forex Trading Library

Intraday Analysis – USD awaits catalyst

0 69

EURUSD bounces back

Chart of EURUSD

The euro inched higher as retail sales across the bloc beat expectations in March. After bouncing off the daily swing low of 1.0540 the single currency is striving to resume its uptrend from last November. The latest pullback has found bids over the 20-day SMA (1.0830) and a break above the immediate resistance at 1.0920 suggests that buyers are still committed to the game. A close above 1.0970 would expose this year’s peak at 1.1030, potentially giving the bulls a decisive edge. 1.0750 on the 30-day SMA is a major floor.

NZDUSD struggles to hold

Chart f NZDUSD

The US dollar claws back losses as traders wait to see whether inflation has been brought down. 0.6380 has once again proved to be a tough level to crack after the first two bullish attempts back in February. A drop below the twice-tested support at 0.6210 has prompted more buyers to bail out. 0.6230 is the first hurdle and a break above 0.6290 would turn sentiment around. Failing that, 0.6150 is the critical level to keep the pair afloat as its breach would make the kiwi vulnerable to a bearish reversal in the weeks to come.

US 30 holds high ground

Chart of US30

The Dow Jones 30 rallied after Chicago Fed President Goolsbee warned about raising rates too aggressively. On the daily chart, a close above the March high of 33500 and a bullish MA cross are signs that the market’s optimism has taken hold. A brief consolidation above 33300 has allowed the bulls to hold on to their gains and a close above 33680 may extend the rally to the psychological level of 34000, a step closer towards this year’s peak at 34400. 32900 would be the bulls’ second line of defence in case of a correction.

Test your strategy on how the USD will fare with Orbex

Leave A Reply

Your email address will not be published.