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Intraday Analysis – EUR seeks follow-up

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EURUSD consolidates gains

The euro pulled lower after PMIs fell short of expectations across the bloc. The pair is testing once again the supply zone around 1.1010 formed by the recent peak and the start of last August’s sell-off. A combination of profit-taking and fresh selling has limited the bullish fever. A breakout could force the remaining sellers to abandon ship and open the door to an extension to 1.1140. With the RSI back into the neutral area bargain hunting could be expected. 1.0880 over the 20-day SMA is an important level to see follow-up buying.

NZDUSD breaks higher

The New Zealand dollar holds onto its recent gains on improved risk sentiment. A convincing break above 0.6220 has put the kiwi back on a bullish trajectory following a two-week long consolidation. 0.6270 is the next threshold before the price could advance towards the mid-July peak of 0.6400. A brief sideways action might be what the bulls needed to catch their breath after the RSI showed a double top in overbought territory. The new demand zone 0.6110-0.6150 is crucial in sustaining the current momentum.

GER 40 seeks support

The Dax 40 stalled after the ECB pushed back against rate-cut wagers. A spike at the psychological level of 17000 is a sign of exhaustion as the index records a fresh all-time high. With the daily RSI well into the overbought area and a bearish divergence on the hourly chart, short-term bulls may be reluctant to chase the bids. A slip below 16740 has prompted some leveraged positions to close and a double dip below 16640 would confirm the weakening impetus, sending the index to 16400 on the 20-day SMA.

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