Forex Trading Library

Intraday Analysis – USD claws back losses

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USDJPY bounces back

Chart of USDJPY

The US dollar bounced after the Fed signalled another 50 bp hike by year-end despite a pause. The pair has consolidated its gains along the 20-day SMA (139.00) after rising above the key supply zone around 138.00. The latest surge above 140.90 has prompted sellers to cover and could pave the way for a bullish continuation with 142.00 as the next threshold. This would confirm the upward skew and attract buyers in hope of an extension to 145.00. 140.10 is the closest support as the RSI shot into the overbought area.

NZDUSD turns lower

Chart of NZDUSD

The New Zealand dollar softened after traders sold the news as the Fed held interest rates steady. The pair came under pressure at a previous demand zone 0.6240-0.6250 after clearing the former daily support of 6.1400. The RSI’s overbought condition has put a strain on follow-through bids as buyers started to take some chips off the table. 0.6140 is the closest support to see if there is any renewed interest. Failing that, a deeper retracement would expose the base of the breakout rally at 0.6080 from last week.

US30 sees correction

Chart of US30

The Dow Jones broke lower on profit-taking after the FOMC kept options open in a mildly hawkish manner. A pop above the daily resistance of 34250 was a sign that the bulls had doubled down on the rebound, putting this year’s high of 34500 within reach. However, a break below the psychological level of 34000 at the base of the latest surge is an opportunity for the bulls to catch their breath, making 34200 a fresh resistance. 33800 is the next support and 33450 on the 20-day SMA the bulls’ second layer of defence.

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