Forex Trading Library

Intraday Analysis – USD attempts to rebound

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USDCHF breaks resistance

Chart of USDCHF

The Swiss franc weakened across the board as risk appetite picks up. The pair had met stiff selling pressure in the former daily demand zone around 0.9140 and a subsequent fall below 0.9020 pushed out the weak hands. However, the 30-day SMA (0.8980) has proved to be a solid backbone with an oversold RSI attracting renewed buying interests. A surge above 0.9100 might have kept the bulls in the game by prompting sellers to reconsider. 0.9040 is a fresh support and a close above the ceiling of 0.9140 would resume the rebound.

EURJPY bounces higher

Chart of EURJPY

The euro advances as the ECB will stretch the rate differential at the upcoming policy meeting. On the daily chart, sentiment remains upbeat as the price grinds its way along the 30-day SMA. The single currency has consolidated its gains after clearing the psychological level of 150.00 with 149.60 as a key support to keep the current momentum going. The double top next to 151.00 is a major ceiling ahead and its breach would flush out the last sellers and pave the way for a bullish continuation in the medium-term.

GER40 to test recent peak

Chart of DE40

The Dax 40 pops higher as investors expect a modest 25bp hike from the ECB this week. A surge above the psychological level of 16000 has helped the index break free of the recent consolidation range. After the RSI shot into the overbought area a brief pullback saw follow-through interests over the former resistance, keeping the bullish momentum intact as a deeper retracement would send the price to 15730. On the upside, the recent peak of 16300 is the last obstacle before the uptrend could resume.

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