Forex Trading Library

Intraday Analysis – USD Keeps the Pressure On

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GBPUSD another day, another drop
GBPUSD drop amid USD pressure

As the dollar regained strength against its competitors, the pound took another tumble, exacerbating the ongoing USD pressure. With the BoE giving less indication than the Fed about cutting rates, 200 pips fell off the value of cable. The pair is advancing towards the psychological level of 1.2600 as bears seek support. The chart shows stiff resistance from profit-taking, and fresh selling could be expected. A bullish turnaround would need a close above 1.2670 for validation. On the flip side, 1.2585 is the first support, with the RSI hitting a double bottom.

NZDUSD tests support
chart depicting NZDUSD support test amid USD pressure, highlighting the influence of dollar dynamics on the pair's movement.

The New Zealand dollar hit a new low as risk sentiment tried to make its way back. After the kiwi touched 0.5985, attention turned to the emerging bullish divergence on the RSI. 0.6000 is fresh support with the hope that sentiment will turn upbeat soon. A successful bounce would need to lift 0.6055 first, followed by the recent swing high of 0.6100 to attract momentum buyers and trigger a runaway rally towards the daily resistance at 0.6210.

USOIL remains in a bullish channel

WTI gears up for another bounce higher after economists remain optimistic that crude will hit $100 in the next quarter. A new high at 83.00 saw some resistance as the process dropped towards 80.00. With another rally expected, 81.00 is the next target with 82.30 the new resistance. A failure to break higher would keep the downtrend intact from the daily chart’s perspective. 79.80 is the first support should the price start to turn lower. The psychological level of 77.00 at the base of the current breakout rally is a key floor.

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