Forex Trading Library

Intraday Analysis – WTI tries to gain foothold

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NZDUSD attempts to rebound

Chart of NZDUSD

The New Zealand dollar grinds higher thanks to an uptick in the market’s risk appetite. The kiwi has retraced most of the recent gains from its late April rally. The RSI’s deeply oversold condition attracted some bargain hunting bids but these early buyers will need to consolidate their gains and clear 0.6300 before they could hope for a sustained recovery. 0.6210 is the first layer of defence in case of further hesitation. The demand zone 0.6120-0.6160 is important in keeping the rebound valid in the medium-term.

USOIL tests resistance

Chart of USOIL

WTI rallied after the IEA expressed optimism about demand in the second half of the year. While a bearish MA cross on the daily chart suggests a lingering selling pressure, the price seems to have found a floor at 69.40 and is testing the previous swing high of 73.40. A bullish breakout would prompt sellers to take some chips off the table, reducing the pressure. Then 76.00 along the 30-day SMA is a major hurdle to lift before a recovery would materialise. On the downside, the daily double bottom at 66.00 is a critical support.

UK 100 struggles for support

Chart of UK100

The FTSE 100 edges lower as downbeat reports from blue-chip companies dent sentiment. The index is still in a correction mode after hitting resistance at 7930. The sideways action shows the bulls’ struggle to contain the pullback and their inability to lift offers around the support-turned-resistance of 7810 reveals strong selling interests from fresh sellers and trapped buyers. 7680 is the current support and 7630 is where the bulls would draw a line in the sand, as a breakout would trigger a sell-off towards 7500.

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