Forex Trading Library

Intraday Analysis – USD recoups some losses

0 58

EURUSD seeks support
EURUSD-CHART-1-12-2023

The euro edged lower after inflation across the bloc fell below expectations in November. The price came under pressure in the supply zone 1.1000-1.1050 near the start of a sell-off back in August. Profit-taking by short-term buyers has driven the quote below the close support of 1.0950, turning it into a fresh resistance, which may force more buyers out. As the RSI sinks into the oversold area, 1.0860 on the 20-day SMA is a key level and its breach may trigger a deeper correction to the base of a previous bullish breakout at 1.0750.

USDJPY tests resistance
USDJPY-CHART-1-12-2023

The yen tries to reclaim some lost ground with a lower unemployment rate in October. The pair continues to struggle for support after hitting last year’s high of 151.80. A fall below the bottom of the recent rebound at 147.30 has further put the bulls on the defensive. 146.50 is the immediate support and its breach would expose 145.00 which is critical in maintaining the bullish bias in the medium-term. On the upside, 148.70 is the first level to lift to ease the pressure and only a decisive close above 149.70 would turn things around.

SPX 500 consolidates gains
SPX-500-CHART-1-12-2023

The S&P 500 holds onto gains as the PCE print showed inflation cooling as expected last month. The index is grinding last summer’s peak and the psychological level of 4600. This is a major crossroads as a breakout may signal a bullish continuation, namely putting the bull market back on track after nearly two years of correction. In the short-term, 4530 is the closest support and 4490 at the confluence of the 20-day SMA and the base of a bullish breakout two weeks ago is an important level to expect trend followers.

Test your forex trading strategy with Orbex

Leave A Reply

Your email address will not be published.