Forex Trading Library

Intraday Analysis – Greenback Poised for Breakout

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NZDUSD extends consolidation

The Kiwi remains indecisive after falling back down to the 0.62 handle. With the greenback making gains across the board, the pair has seen a drop of over 100 pips since the start of the year. On the 4-hour chart, the upward bias remained intact after the Kiwi bounced off 0.6230. The price then consolidated its gains but continues to bounce of the 20-day SMA. A close back above 0.6275 would open the door to the previous high at 0.6350.

EURJPY struggles for support

The Japanese yen continues its struggle against the Euro as the pair hits higher and lower highs. After it failed to break the 157.00 level, prices saw another bounce to the upside to push towards 160.00. With a slight decline in place, a drop below 159.00 prompted buyers to bail out. As the RSI looks overbought, an extension of declines could ensue, with a retest of 158.30. Selling interest first needs the aforementioned break, opening the door to 157.85 and 157.20.

DOW 30

The Dow popped higher after data showed that US inflation remains on track to hit 2% this year. A break above 37300 prompted sellers to cover their positions, easing the downward pressure. The subsequent rally suggests that bulls have taken over in the medium term. A whipsaw above 37500 indicates solid support as buyers were fast to keep the price action afloat. As the 20-day SMA holds firm, this could be the catalyst if prices will test 38000 or sink lower.

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