Forex Trading Library

Intraday Analysis – USD Claws Back Losses

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USDJPY bounces back
USDJPY Chart: USDJPY rebounds on dovish Bank of Japan signals, hinting at a bullish continuation.

The US dollar bounced after a dovish signal from the Bank of Japan. The pair managed to bounce back after falling over 100 pips due to the latest CPI data from the US. The latest surge above 156.50 has prompted sellers to cover and could pave the way for a bullish continuation, with 157.40 as the next threshold. This would confirm the upward skew and attract buyers hoping for an extension to 160.00. 155.70 is the closest support at the recent double bottom.

NZDUSD remains bullish
NZDUSD Chart: NZDUSD stays bullish post-FOMC, with stable rate projections.

The New Zealand dollar kept its composure after diving below the 0.6100 level. The pair bounced back as FOMC projections signalled an ongoing rhetoric that the Fed will not raise rates soon. 0.6130 is the closest support to see if there is any renewed interest in the greenback. On the flip side, a break above 0.6220 at the last swing high would put the Kiwi back on the front foot for a charge towards 0.6300.

US30 stuck in consolidation
US30 Chart: US30 consolidates, awaiting breakout to indicate next trend direction.

The Dow Jones broke lower on profit-taking after the FOMC kept their option open. Since then, a slight increase in value followed by stiff consolidation has seen a top at 39,000 and a bottom at 38,500. A move out of this range will provide the next bullish or bearish signal as bulls hope for a test back towards 40,000. On the downside, 38,000 is a firm support and 37450 on the 20-day SMA, the bulls’ second layer of defence.

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