Forex Trading Library

Intraday Analysis – SPX500 no slowing down

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USDCHF falters at recovery

USDCHF Chart Demonstrating Bearish Divergence Near 0.8725 Resistance Level

Next week, the US dollar builds a base ahead of the Fed’s interest rate decision. An initial pop above 0.8725 has prompted short-term sellers to cover some of their bets. 0.87 along the 20-day moving average remains to be a challenging level to crack for the time being. 0.8610 at the base of the recent push is a key support to keep the rebound intact. Its breach could trigger a new round of sell-off and push the greenback below January’s low of 0.8390, confirming a bearish continuation in the process.

EURJPY choppy upswing
EURJPY Chart Displaying Bearish Divergence Around 162.00 Resistance Level

The Japanese yen continued its struggle against the Euro after the BoJ held on to its negative rate decision. The pair continues to grind higher as it tries to keep the uptrend intact in the medium-term. Recent jitters have found resistance at 162.00 as a bearish divergence on the RSI threatens to end the bull run. A break below 158.90 could turn the trend around 142.90 and send the pair below 157.00, putting the Euro on a bearish extension. A bullish breakout would send the pair to December’s highs above 164.00.

SPX 500 record after record

SPX 500 Chart Indicating Bearish Divergence Despite Record Highs Near 4800 Level

The S&P 500 rallies as an upbeat earnings season continues pushing the index higher. A close above the psychological level of 4800 and a bullish MA suggest that sentiment remains to the upside. With more corporate earnings looking to propel price action further, a break above 4900 could be next. However, as a medium-term bearish divergence on the RSI lingers, analysts look for a correction with 4815 the first target. A retracement to 4700 first needs a 4865 break.

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