Forex Trading Library

Intraday Analysis – WTI remains upbeat

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AUDUSD hits resistance

The Australian dollar drifted lower as the RBA meeting minutes stuck to the dovish side. The latest rebound has come to a halt at the support-turned-resistance of 0.6475 which sits next to the 30-day SMA. As overall sentiment remains downbeat due to bearish inertia, a combination of profit-taking and fresh selling could weigh on the price action. 0.6415 is the immediate support to keep the current momentum intact and further down the recent bottom at 0.6370 is a critical floor to prevent a bearish continuation.

USOIL grinds higher

WTI crude rallies on the EIA’s forecast of weak US shale production. A surge above the psychological level of 90.00 continues to fuel the bullish impetus, putting the price on its way to the double top of 93.50 from last autumn. The daily RSI’s rise into the overbought area and a bearish divergence on the hourly time frame suggest a slowdown in the momentum and a pullback cannot be ruled out. The previous swing low of 89.40 would be the first level to test the follow-through interest with 87.50 as a second line of defence.

UK 100 consolidates gains

The FTSE 100 pulls lower as investors eye the Bank of England’s policy decisions later this week. A jump above this summer’s high of 7720 suggests that sellers were forced to cover their positions, intensifying the volatility. This bullish breakout may have put the index back on its upward trajectory with 7950 as a potential target in the weeks to come. In the near term, the bulls may look to consolidate their gains and secure a foothold before they could push back above 7750. 7620 is the closest support in case of a pullback.

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