Forex Trading Library

Intraday Analysis – USD struggles to recover

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USDJPY pulls back

The US dollar slipped after a slowdown in last month’s manufacturing PMI. On the daily chart, the pair continues to hold well above the psychological level of 130.00. A rally above 133.00 is an encouraging sign, prompting more sellers to cover their bets and easing the downward pressure. However, the buy side will need to consolidate their gains before they could push past the support-turned-resistance at 135.00 for a sustained recovery. 131.20 is a key support and 130.00 the bulls’ second line of defence.

EURGBP grinds support

The higher beta pound edges higher over improved risk appetite. The euro’s recent rebound to 0.8860 has been struggling to secure a base at the retracement. A shooting star candlestick pattern at 0.8820 and a lengthy grind over 0.8760 reveal a lack of conviction from the buy side. A bearish break would expose the double bottom (0.8720) formed by the January and March lows on the daily chart. Only a close above 0.8860 may turn sentiment around and pave the way for a bullish extension in the medium-term.

US 30 breaks resistance

The Dow Jones 30 finds support from energy stocks following surprise output cuts by OPEC+. The rebound gained traction once above 33000 and the path became unobstructed for an extension to the March high of 33580. The latest breakout prompted more shorts to cover and may have opened the door to 34000 then this year’s high of 34360. The RSI’s another venture into the overbought area may temporarily limit the fever and let the bulls catch their breath. 33250 is the immediate support in case of a pullback.

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