Forex Trading Library

Intraday Analysis – The Dow Remains Silent

0 26

US 30 tests critical support
US 30 Chart: Dow Jones tests critical support at 39000.

After the recent stock rally cooled, the Dow Jones ( US 30 ) looks for the next move. On the chart, the index is struggling to hold on to its gains from the few sessions as a bearish divergence opens. A break below 39000 would cause a retest of the lower band of the current consolidation at 38400. A break below this primary floor would force investors to look at their positions, possibly triggering a broader sell off. 38800 is the immediate support should buyers start to re-enter the market.

GBPUSD continues to climb
GBPUSD Chart: Bullish trend aims for January high at 1.2760.

The pound remained bullish as the recent double bottom catapulted prices away from 1.25. The pair is still pushing for bids towards January’s high of 1.2760 on the chart. The latest bounce stopped around 1.2690 as a minor consolidation began. A drop below the psychological level of 1.2600 at the base of a former bullish engulfing candle could show that the bull run has been short lived. A break lower at 1.2640 would confirm this, as 1.2730 becomes the closest resistance.

EURJPY bounces back
GBPUSD Chart: Bullish trend aims for January high at 1.2760.

The Japanese yen fell after inflation failed to drop faster than expected. The pair has previously met stiff selling pressure at 163.50. But that did not deter bulls as bids emerged on the 20-day SMA as prices held onto the 163.00 level. This suggests that overall sentiment is still upbeat in the near term. However, sentiment could swing with a double top on an overbought RSI, with 162.50 being a fresh support. A close above 163.30 would trigger a runaway rally towards 164.00.


Test your forex trading strategy with Orbex

Leave A Reply

Your email address will not be published.