Forex Trading Library

Intraday Analysis – USD bounces back

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NZDUSD breaks lower

Chart of NZDUSD

The US dollar jumped after a strong ADP employment reading. A rally above the previous swing high of 0.6200 has prompted some sellers to trim their exposure and eased the pressure on the kiwi. 0.6220 is the key obstacle to lift before the pair could break free of its corrective path, potentially opening the door to 0.6330. Instead, stiff selling has pushed the pair below the resistance-turned-support of 0.6170, putting a dent in the previous momentum. 0.6100 is a critical support to keep the week-long rebound valid.

EURGBP tests critical floor

Chart of EURGBP

The single currency rallies as eurozone bond yields recover amid bets on more ECB rate hikes. The sell-off continued after a break below 0.8590 forced buyers to bail out. A revisit of June’s low of 0.8520 is a sign of weakness and shows a lack of commitment to keep the price afloat. While some bargain hunting triggered a bounce after the RSI recovered into the neutral area, the bulls will need to clear 0.8570 then 0.8590 before they could regain control. Otherwise, a bearish breakout would extend losses towards 0.8400.

US 500 probes support

Chart of US500

The S&P 500 slides as investors await further confirmation of a resilient US labour market. While a close above 4440 supports the bullish trajectory, the latest horizontal grind under 4455 is a sign of exhaustion. A retracement has started as short-term buyers took profit. As the RSI dips into the oversold zone, the fallback could be seen as an opportunity as the medium-term rally players step in. 4380-4400 over the 20-day SMA is the first level to expect follow-up bids and the swing low around 4330 is an important support.

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