Forex Trading Library

Intraday Analysis – USD pulls lower

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NZDUSD attempts to rebound

Chart of NZDUSD

The US dollar slips as rising claims for unemployment benefits suggest a looser job market. After breaking below the daily demand zone around 0.6110, the kiwi has been struggling to find buyers. The directional bias in the medium-term remains down as a series of lower lows would continue to attract trend followers, but a snapback in shorter time frames cannot be excluded to alleviate the oversold situation. A break above 0.6100 may bring the kiwi to 0.6190 next to the 20-day SMA. 0.5990 is the immediate support.

XAGUSD lifts resistance

Chart of XAGUSD

Silver recovers as expectations of an easing of the tight US labour market drag bond yields lower. A higher low and a break above the first resistance of 23.50 have eased the selling pressure. The rebound is likely to be driven by short-covering for now. A close above the confluence of the brief swing high of 24.20 and the 30-day SMA would attract stronger buying interests and send the metal to the former support of 24.70 where the mid-May sell-off started. 23.30 is the first support as the RSI drops back to the neutral zone.

NAS 100 bounces back

Chart of US100

The Nasdaq 100 bounces back as slowing wage inflation lifts the hope of a rate hike pause. The index has consolidated its gains above 14220 after a parabolic ascent to a near 14-month high. As a show of force, the pullback has barely dented the upward momentum. Instead, trend followers saw in it an opportunity to stake in. A close above the recent peak of 14500 would carry the index to 14800 with a potential extension to the March 2022 high of 15250. Further below, 13900 along the 20-day SMA is an important floor.

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