Forex Trading Library

Intraday Analysis – USD seeks fresh catalyst

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EURUSD hits resistance


The US dollar jumps back as accelerating home price growth supports a hawkish guidance from the Fed. The pair had found a foothold over 1.0520 but came under pressure near the previous peak of 1.0690. A U-turn below 1.0590 confirms this supply zone by putting late buyers on the defensive. The RSI’s oversold condition may attract some bids with 1.0600 as the first hurdle. Follow-through buying around 1.0520 is critical in keeping the rebound momentum intact as a breakout could trigger a new round of sell-off below 1.0450.

USDJPY climbs higher


The Japanese yen plunged after the BoJ pledged to stick with its loose policy. Recent profit-taking below the supply zone 151.00-152.00 has barely dented the optimism with 149.00 proving to be a robust support. A combination of bargain hunting and momentum buying has propelled the dollar back to the recent high of 150.70. Its breach would lead to further incursion into the said zone with 152.00 as a major ceiling. As the RSI ventures into the overbought area again, the psychological level of 150.00 is the first support.

NZDUSD struggles to rebound


The New Zealand dollar weakened after the unemployment rate rose in the third quarter. Sellers have taken some chips off the table, temporarily lifting the price. 0.5870 next to the 20-day SMA is the first hurdle to break to ease the downward pressure. Further up, the support-turned-resistance of 0.5950 is a major cap and the bears may look to sell into strength as long as overall sentiment remains downbeat. The recent bottom of 0.5775 is the immediate support and its breach would signal a bearish continuation.

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