Forex Trading Library

Intraday Analysis – USD loses ground

0 24

EURUSD rebounds sharply

The US dollar sank after the Fed’s economic projections showed lower interest rates for 2024. A previous spike at 1.0820 had forced some sellers to cover, then a decisive surge may have put an end to the recent correction. 1.0940 is the next hurdle to clear before the euro could resume its climb above 1.1010. As the RSI shot into the overbought area, a temporary pullback would let the bulls catch their breath. The base of the engulfing bullish candle at 1.0780 is the immediate support to keep the current momentum going.

NZDUSD breaks higher

The New Zealand dollar shot higher after a dovish Fed triggered renewed risk appetite. The pair has found support at 0.6080 over the 20-day SMA and a strong rebound is indicative of strong follow-through buying. The recent peak of 0.6220 was the last hurdle and its breach would prompt the remaining bears to cover and turn the short-term mood around. 0.6270 is the next target before last summer’s high of 0.6400 as the kiwi resumes its rally from last month. 0.6150 from the breakout is the closest level to consolidate gains.

UK 100 tests supply area

The FTSE 100 inches higher as investors expect the BoE to hold rates steady. The index continues to claw back losses from the mid-October sell-off and a series of higher lows indicates a mounting buying pressure. The supply zone stretching from the start of the said sell-off at 7630 to the October peak of 7700 may see strong selling interests laying around as a 10-month long consolidation has made overall sentiment cautious. A bullish breakout could resume the uptrend but failing that, 7540 would be the first support.

Test your forex trading strategy with Orbex

Leave A Reply

Your email address will not be published.