Forex Trading Library

Intraday Analysis – Aussie looking for reprieve

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AUDUSD breaks support
AUDUSD chart

The Australian dollar remains bearish after breaking through the 0.66 handle. A brief uptick could shift sentiment, however, a lift back to 0.6660 is required. This level sits on the 20-day moving average, making it a confluence area. A deeper correction would test the daily low at 0.6530. The sell side will need to keep momentum if prices reach November’s lows towards 0.63.

USOIL looking for direction
USOIL chart

WTI crude remains in a symmetrical triangle after losing confidence going into the new year. A close above the previous high of 73.00 has been short-lived with the rally hitting a roadblock at 74.15. A break below 72.65 could force leveraged buyers to bail out. Not all is lost, though, this might be a correction after a bearish RSI divergence could hint at exhaustion. 75.00 on the 20-day moving average saw renewed interest. 76.00 would be the bulls’ second layer of defence.

US 30 hitting more resistance
US30 chart

The Dow Jones 30 weakens as fewer jobless claims indicate a tight US labour market. The choppy consolidation around 37400 has proved to be a challenging level to crack. The price’s sharp reversal suggests that bears could still have the final word. A clean cut through 37600 then 37800 has put the bulls on the defensive, with the latter becoming a fresh resistance. The index is now setting its sights on more fresh highs. The RSI’ oversold condition may attract some bargain hunters.

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