Forex Trading Library

Intraday Analysis – CHF Gives Up Gains

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USDCHF bounces back
USDCHF Chart: The CHF softens, and USDCHF rebounds, breaking key resistance level.

The CHF softened as the greenback moved over 100 pips to break the 0.8900 level. After a progressive rally for most of the past month, a sharp turnaround saw buyers step back into the frame. Bulls must clear the next hurdle of 0.8970 before a recovery can materialise. 0.8850 is fresh support, and its breach would invalidate the rebound. The pair will be sent to the May lows around 0.8730, confirming a bearish moving average cross.

EURJPY pushing for a reversal
EURJPY Chart: EURJPY attempts reversal, aiming for a higher level after stabilizing inflation data.

The Euro recouped some losses after inflation data remained stable in the bloc. Bulls have doubled after reaching the previous peak of 170.00, resuming the uptrend with 171.00 as the next milestone. The RSI’s new top in the overbought zone could lead to a temporary pullback to meet the 20-day SMA. 169.30 is the first support level if sellers enter the market, and 167.80 at the base of the recent downturn would be a crucial level to maintain the momentum.

US 30 indecisive
US 30 Chart: Dow Jones remains undecided, testing support.

The Dow Jones keeps its sideways stance as price action remains undecided. The index is pulling back from its recent just above 39000 and is testing 38,800, with the RSI dropping back into the neutral area. A bearish breakout would force leveraged long positions to liquidate and cause a correction to 38,000 at the base of the recent bottom. Sentiment generally remains upbeat, and bulls would be looking for a stable entry point. A close back above 39,250 could put the index back on track.

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