Forex Trading Library

Intraday Analysis – USD awaits further catalyst

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USDCHF consolidates gains
USDCHF chart 5-10-23

The US dollar tries to hold on to its gains as traders await September’s nonfarm payrolls. A close back above the recent peak of 0.9220 was an indication of a persistently upbeat mood as buyers doubled down on the greenback. Past 0.9240, 0.9340 near last March’s high could be next though the RSI’s overbought condition on the daily chart might lead to a pullback to let the bulls catch their breath. The recent swing low of 0.9090 coincides with a former daily resistance, making it a key level to maintain the upward momentum.

NZDUSD tests resistance
NZDUSD chart 5-10-23

The New Zealand dollar fell after the RBNZ stayed put while markets dialled back bets of further tightening. A sharp reversal from 0.6050, a former demand zone after a bearish breakout in August, indicates stiff selling pressure overhead. Successive breaks below 0.5960 then 0.5900 shows a lack of follow-through bids, putting the latest buyers on the defensive. A drop below the floor at 0.5860 could extend losses to last November’s low of 0.5750. On the upside, sellers would be expected to fade a rebound towards 0.5960.

USOIL struggles for support
USOIL chart 5-10-23

WTI plunged on reports that Russia could be lifting its diesel ban soon. The price is looking to consolidate its recent gains after lifting offers near November’s high of 93.70. A fall below the previous swing low of 88.50 and the 20-day SMA foreshadowed further weakness to come as short-term buyers exited their positions. An acceleration below 86.80 has prompted more buyers to close out with 83.00 as the next level to see if support would emerge. As the RSI sank again in the oversold area 86.50 is the first resistance to clear.

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