Forex Trading Library

Intraday Analysis – Dax Still Riding High

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USDCHF looks to recoup losses

The US dollar softened after the continuous easing of inflation rumours. The pair has remained under pressure after a tentative break below last year’s low of 0.8550. The current rebound from this critical level has led to a consolidation. The pair must hold on to the 0.84 handle with a bearish divergence potentially in place to avoid another sell-off. Otherwise, renewed buying pressure would send the pair towards 0.87, with a break of 0.8580 and 0.8630 needed.

EURGBP looking for direction

The pound recouped losses as the UK’s economy avoided a contraction in December. A break above 0.8570 means bears are still in charge of price action. A pullback would be seen as an opportunity to move back to the previous swing high towards 0.87, with an 0.8620 break being the first target. The previous low of 0.8550 is the first support on the 20-day moving average. Below that and this opens up last September’s sell-off at 0.85.

GER 40 looking for correction

The Dax 40 has seen a remarkable surge in recent sessions as markets go risk-on post-US inflation. A bullish MA cross on the daily chart confirms increased risk appetite after last month’s high above 17000. Signs of exhaustion come from a developing bearish channel capturing prices. 16600 is the immediate support in case the index takes a breather. A drop below 16550 could indicate the beginning of a sharp sell-off.

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