Forex Trading Library

Intraday Analysis – Dow Hits a Fresh High

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US 30 pushing higher
Dow Jones: Holds gains; key levels for bullish momentum amidst banking stocks influence.

The Dow Jones saw a slight pullback in its recent bull rally as investors turned their attention to banking stocks. The index still strives to hold onto its gains after lifting the key daily resistance of 39100. A fall below 39000 will put the short-term bulls on the defensive, leading to more profit-taking as they are likely to step aside. 39600 over the 20-day SMA is another level to see whether buyers will keep the bullish momentum. Failing that, 38800 would be the next stop to the downside.

USDCHF begins the comeback
USDCHF: Dollar targets resistance; failure may trigger selling

The US dollar remains bullish after bouncing over 100 pips since the beginning of the week. The next step is to break the previous resistance at 0.8980 before a complete rebound can materialise. Failing to break higher would indicate exhaustion after a mid-term rally, pushing prices below the 20-day SMA. Buyers could then be forced to bail out and trigger a new round of selling towards 0.8880 and the recent bottom of 0.8820.

EURGBP fails to cover the gap
EURGBP: Pound faces resistance; pullback tests buyers.

The pound pared gains as traders worried about the impact of next week’s general election. A recent Doji at 0.8440 at the confluence of a previous swing high shows rejection and could lead to another lower move. A pullback to the base of the bullish momentum at 0.8400 is a test of buyers’ resolve, as its breach would invalidate the rebound and cause an extension to 0.8320. 0.8500 is the resistance where the previous gap will be filled.

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