Forex Trading Library

Intraday Analysis – WTI continues to recover

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AUDUSD turns south

 

The Australian dollar fell on speculation that the tightening may be over after the RBA left rates unchanged. Two consecutive attempts at 0.6520 on the 30-day SMA have failed to lift the Aussie, suggesting a lingering selling pressure. Then a clean cut below 0.6400 forced early buyers to bail out and could signal a new round of sell-off in the making. The RSI’s oversold condition caused some profit-taking but past 0.6370 the pair is heading to last November’s low of 0.6280. On the upside, 0.6450 would be the first resistance to clear.

GBPUSD breaks lower

Cable tumbled after August’s PMI stayed in contractionary territory. A drop below the recent bottom of 1.2550 indicates that the bears mean business after a faded rebound to the 30-day SMA at 1.2740. The round number of 1.2500 coincides with the origin of a breakout rally back in mid-July and is the next level to see if buyers would reemerge after the RSI sank into oversold territory again. The support-turned-resistance of 1.2600 is the first hurdle and the mood may only improve if Sterling manages to reclaim 1.2700.

USOIL nears 10-month high

WTI crude soared as Saudi Arabia and Russia extended their supply cuts to the end of the year. On the daily chart, a new high above 84.80 has put the commodity back on track and may lead to a broader recovery with the psychological level of 90.00 as the next target. In the near-term, another venture of the RSI’s in the overbought area may cause a pullback which could be seen by the bulls as an opportunity with 85.00 as the first support. 82.00 sits on the 20-day SMA, making it an important level to gauge the bulls’ commitment.

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