Forex Trading Library

Intraday Analysis – EUR stays under pressure

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EURUSD struggles for supportEURUSD CHART 27-10-23

The euro softened after the ECB kept its interest rates on hold as widely expected. Despite a new high above 1.0640, short-term bulls’ failure to hold onto their gains above 1.0570 at the base of the breakout reveals their weak commitment. The twice-tested 1.0500 is a major demand zone to keep the recent bounce intact. Its breach would raise volatility and signal a bearish continuation, forcing buyers to liquidate and attracting momentum sellers. On the upside, 1.0590 is the first resistance to clear to improve the mood.

USDJPY grinds higher

USDJPY CHART 27-10-23

The Japanese yen recovered some lost territory after the CPI in the Tokyo area beat expectations. On the daily chart, the pair is grinding up along the 20-day SMA. The round number of 151.00 is an intermediate hurdle and last year’s spike at 152.00 an important ceiling where stiff selling could be expected as the dollar inches up into that supply area. As the RSI shot into the overbought zone, 149.90 is a fresh level to expect trend-followers’ bids. Further down, 149.00 would be the bulls’ second layer of defence.

NAS 100 continues lower

NAS 100 CHART 27-10-23

The Nasdaq 100 slides as weak forecasts from tech megacaps dent investor sentiment. A limited bounce has met stiff selling pressure at 14800 and a subsequent reversal below 14450 suggests that the path of least resistance is still down. From the daily chart’s perspective, this means that the index could be in for a prolonged correction with the psychological level of 14000 then 13700 as potential targets. The RSI’s oversold situation may cause a brief bounce to 14500 should sellers take some chips off the table. 

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