Forex Trading Library

Intraday Analysis – Dollar Rebounding Ahead of CPI

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EURJPY bounces higher
EURJPY Chart: "EURJPY bounces higher post-European elections, consolidating gains with key support and resistance levels

The euro remains choppy after the recent European elections caused a stir. On the chart, sentiment remains upbeat as the price grinds along the 20-day SMA. The single currency has consolidated gains after clearing the psychological level of 169.00, with 168.40 as critical support to keep the current momentum going. The overall bearish sentiment continues to dominate the pair after hitting a recent top at 170.80. 169.80 needs to be broken before any sign of a recovery.

USDCHF breaks resistance
USDCHF Chart: "USDCHF breaks resistance with new support, potential continuation above recent highs.

The Swiss franc weakened across the board as risk appetite picked up. The pair has seen a boost in price action as the dollar jumped over 100 pips with progressive jobs data. A surge above 0.8950 has kept the bulls in the game by prompting sellers to reconsider after the bearish downturn for most of last month. 0.8900 is fresh support, and a close above the ceiling of 0.9040 would resume the rebound.

GER40 on a downturn
GER40 Chart: "GER40 subdued amid rate cut expectations, potential decline with key resistance level in view

The Dax 40 remains subdued as investors expect further rate cuts this year. A move below the psychological level 18500 has pushed the index back to the recent consolidation range. After the RSI lingers in the neutral area, a brief pullback saw follow-through interest over the former resistance. The bearish momentum remains intact as a deeper retracement would send the price to 18100. On the upside, the recent peak of 18750 is the last obstacle before any hope of a turnaround.

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