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Intraday Analysis – Dollar Awaits Fed and ECB

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EURUSD Breaks Resistance Ahead of ECB Interest Rate Decision
EURUSD Chart: Breaks Resistance, Eyes 1.0885 Level Ahead of ECB Interest Rate Decision

The US dollar retreats as the market awaits the ECB interest rate decision. A break above the first resistance of 1.0800 eased some downward pressure. Bulls have lifted prices past the mid-1.08 zone, opening the door for an extension to the previous spike at 1.0885. 1.0840 is a fresh support should the pair need to consolidate its gains. 1.09 is the next key target in keeping the current bounce valid otherwise, a sharp reversal could be triggered.

NZDUSD tests support
NZDUSD Chart: Testing Support at 0.6070

The New Zealand dollar softened as prices fell over 100 pips. The Kiwi came under pressure on the chart as prices fell through the 0.62 level, leading to a collapse. On the hourly time frame, 0.6070 at the base of the latest bounce is necessary support to measure the strength of buying interest. The rising RSI could indicate that we have it at the bottom. 0.6130 would be the next stop on the way up, with 0.6180 as a fresh resistance.

US30 attempts to bounce back
US30 Chart: Attempting to Bounce Back from 39200 Level

The Dow Jones tumbled over 500 points as Apple shares sank. A bounce-off of yearly highs of 39200 has prompted short-term sellers to enter the market. Bulls will wonder how much momentum can be created as the RSI develops a bullish divergence. 38800 is a crucial hurdle to clear before bulls can hope for a sustained recovery towards the recent peak. A break below 38400 opens up a stiffer correction and could bring prices back to 37500.

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