Forex Trading Library

Intraday Analysis – EUR gains momentum

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EURUSD surges towards recent peak

Chart of EURUSD

The euro soared after the ECB’s eighth consecutive interest rate hike amid rising inflation forecasts. The pair has been inching up along a rising trend line from last week and a surge above the supply zone near 1.0900 in the shape of a former daily support has flushed out the remaining bearish interests, stirring up volatility in the process. 1.0960 is the next hurdle and as the RSI ventures again in the overbought area, a pullback would drive the price towards the trendline with 1.0820 as a key level to preserve the momentum.

AUDUSD breaks daily resistance

Chart of AUDUSD

The US dollar continues to weaken across the board after the Fed paused its rate hikes. The current rebound from the base of last November’s momentum rally and a break above the top of a previous consolidation range (0.6800) are signs of renewed interest in the Aussie. Now that sellers are out of the picture, the path is mostly clear for an extension to 0.7000 with 0.6920 as an intermediate resistance. The two-week long rally might need some breathing room as the RSI grinds the overbought area and 0.6790 is a fresh support.

NAS 100 tests 15-month high

Chart of US100

The Nasdaq 100 jumped as investors hope to see the Fed’s terminal rates soon. On the daily, the price is reaching its 15-month high of 15280 as bullish inertia keeps attracting buyers. However, a bearish RSI divergence indicates a deceleration in the rally and could lead to a pullback if traders start to take profit in the major supply zone. 14880 is the closest support and its breach would send the index to 14590 at the end of a previous consolidation. A close back above 15280 would resume the climb to the all-time high.

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