Forex Trading Library

Intraday Analysis – USD Awaits PCE Data

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US30 looks for another record
US30 chart: Nearing another record high, influenced by PCE data, rebounding from support at 39700

The Dow Jones 30 awaits further confirmation from the Fed  (PCE data) as it approaches another fresh high. The rebound gained traction above 39700 after falling towards 39300 in the past session. The latest breakout prompted more shorts to cover and could open the door to 40000. The RSI’s venture into the overbought area could temporarily limit the push and let bears catch their breath. 39400 is the immediate support in case of a pullback.

USDJPY still consolidating

USDJPY chart: Consolidation near resistance at 152.00, RSI showing a bearish divergence.

The USDJPY pair took a breather after the recent 400 pip jump. On the chart, the consolidative stance saw resistance at the psychological level of 152.00, a confluence of November’s high. The rally above 150.00 was encouraging, prompting sellers to cover their bets and easing the downward pressure. However, with a bearish divergence appearing on the RSI, buyers will be cautious of a reversal. 150.50 is crucial support, and 149.30 is the bulls’ second line of defence.

EURGBP grinds support
EURGBP chart: Grinds support at 0.8560, bullish divergence forming as RSI falls.

The euro slipped against the pound over improved risk appetite. The pound’s recent rebound to 0.8560 has been struggling to secure a base at the retracement. With a bullish divergence emerging as the RSI falls lower, 0.8580 is the next target to the upside. Another move higher would test the previous spike at 0.8600. A bearish break would expose a double bottom at 0.8530, which could turn sentiment around and pave the way for a bearish extension in the near term.

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