Forex Trading Library

Intraday Analysis – USD Struggles Ahead of the Fed

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UK (FTSE100) hits another high
The FTSE100 Chart: Hits new record high, bullish sentiment prevails.

The FTSE100 hit a new record high, pushed on by progressive stocks and copper hitting a 2-year high. The bounce off April’s low showed solid interest in keeping the bullish bias intact and convincingly breaking through the 8000 barrier easily. On the flip side, a decisive break below 7750 might suggest that a correction could be coming and prompt some short-term buyers to bail out. 8200 is the first hurdle to lift before the uptrend can continue.

AUDUSD on the road to recovery
AUDUSD Chart: Recovery after surpassing 0.6500 handle.

The Australian dollar continues its recovery after sweeping aside the 0.6500 handle. The pair briefly jumped above the supply area of 0.6580 to give bulls a chance to return to the previous swing high of 0.6640. The next physiological level of 0.6600 is a significant hurdle, and its breach would pave the way for a more meaningful recovery at the recent peak. On the downside, 0.6480 is the immediate support, and the double bottom at 0.6380 is a critical floor.

NZDUSD rebounds higher
NZDUSD Chart: Rebounding higher within bullish channel.

The New Zealand dollar clawed back losses as the emerging bullish channel progressed. On the chart, the pair is steering clear from the 0.5900 zone, as a drop below could trigger a new round of sell-off. A close above 0.5970 is another encouraging sign, prompting sellers to cover and turning 0.5950 into fresh support. The RSI’s overbought condition could cause some pullback, with the daily resistance at 0.6060 being the next target.

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