Forex Trading Library

Intraday Analysis – AUD drifts lower

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AUDUSD tests key support

Chart of AUDUSD

The Australian dollar slumps as slowing inflation could let the RBA ease its hawkish stance. The exchange rate continues to lose ground after it failed to stay above the brief consolidation over 0.6670. 0.6580 at the start of the bullish breakout earlier this month is a crucial level to keep the June rebound valid. The RSI’s oversold condition may trigger a ‘buy-the-dip’ behaviour in this demand zone, but the bulls will need to clear 0.6690 before they could hope for a meaningful rebound, or 0.6500 could be the next target.

USOIL grinds demand zone

Chart of USOIL

WTI crude jumped after the EIA reported a bigger-than-expected inventory drop. The price saw bids in the demand zone 66.00-67.00 as buyers struggle to keep their recent gains. A series of short-term downward breakouts indicates a strong bearish bias and could be grinding buyers’ gears. The psychological level of 70.00 is the first resistance and the bears could be looking to double down at rebounds. Only a new high above 72.60 would brighten up the mood. Otherwise, 65.00 would be the next stop when selling resumes.

NAS 100 bounces back

Chart of US100

The Nasdaq 100 recoups losses supported by recent upbeat US economic data. The index came across some buying interests over the 20-day SMA (14700) after it fell back from a 15-month high (15280). Profit-taking has driven the quote lower but there is no sign of liquidation. Overall sentiment remains exceedingly bullish and trend followers would be eager to jump in in the hope of pushing towards the all-time high. 14870 is the closest support and 15060 the first obstacle to lift, then a close above 15280 would resume the climb.

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