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Intraday Analysis – USD Holds Onto Gains

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USDCHF grinds support

The US dollar consolidates as market participants await the Jackson Hole Symposium on Thursday. In the wake of July’s sell-off profit-taking has been driving the bid up. Then the upward grind came to a halt at the support-turned-resistance of 0.8830 at May’s lows where the bears may be looking to double down. 0.8760 is the closest support to keep the upward slope intact and its breach would confirm that the path of least resistance is down. The bulls will need to lift offers around 0.8830 to extend the recovery above 0.8900.

NZDUSD tries to bottom out

The New Zealand dollar edged higher as retail sales beat expectations in Q2. The pair is trying to stabilise above 0.5900 and a bullish RSI divergence indicates a slowdown in the sell-off momentum, opening the door to a potential bounce. The first supply zone between 0.5990 and the psychological level of 0.6000 is the first obstacle to clear to ease the selling pressure. Then the former daily support of 0.6100 would be within reach. On the downside, 0.5930 is a fresh support in case of a prolonged consolidation.

UK 100 tests critical floor

Global equities struggle over surging US Treasury yields amid renewed hike concerns. The FTSE 100’s close below July’s low of 7230 has invalidated last month’s rebound, putting the bulls under pressure. This critical demand zone extends all the way to March’s low of 7200 and a failure to stay above may trigger a fall to 7000. As the index steadies around 7215, 7350 on the hourly chart is the first resistance to clear to give the buy side a fighting chance but the support-turned-resistance of 7450 could be a tougher level to crack.

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