EURUSD still under pressure
The US dollar advanced after Jerome Powell stated that the Fed’s tightening campaign was not over. On the daily chart, the pair is inching towards the demand zone near 1.0700 after failing to hold above the July low of 1.0850. Zooming into the hourly chart, the RSI’s double dip in the oversold area has brought some buying interest as the euro tries to stabilise above 1.0740. 1.0870 is the first resistance to crack to give the bulls a ray of hope. Then they will need to lift the major ceiling of 1.1000 before a recovery could materialise.
NZDUSD breaks lower
The New Zealand dollar softens as risk appetite remains subdued. The latest rebound has come to a halt at 0.5980 and a subsequent dip below the recent low of 0.5900 put the buy side under pressure. Needless to say that sentiment has remained cautious after more than five weeks of correction. The former support of 0.5940 is the first hurdle to clear to ease the downward pressure, but a long candle wick shows rejection and reaffirms the bearish bias. A new round of liquidation would be sending the kiwi to 0.5840.
US 30 lacks support
The Dow Jones 30 edged lower as bond yields rose after Powell’s hawkish speech. A bearish cross on the daily chart is a sign of exhaustion as the index struggles to secure bids. Sellers have faded the latest rebound at 34700, signalling a strong bearish skew in the near term. With buyers cautiously waiting on the sidelines, the index is yet to find a bottom. 34000 at the start of a breakout rally in mid-July is the next level to see if buyers are back or the daily support of 33600 would be a critical floor to keep the Dow afloat.
