Forex Trading Library

Intraday Analysis – USD Looking Fragile

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FTSE 100(UK 100) seeking support
UK 100 Chart: The FTSE 100 rebounds to resistance with support at a recent low, potential bullish continuation ahead.

The FTSE 100 rebounded on the recent sell-off, but it looks likely to test the recent low at 8125. A cup and handle formation has brought the index to its first key resistance at 8350, which coincides with the 20-day SMA. A bullish move would flush out any selling interests and pave the way for an extended recovery to the previous consolidation zone around 8450. A close above this significant ceiling could trigger a bullish continuation above 8500 in the near term.

EURUSD hits another high
EURUSD Chart: EURUSD hits resistance after a strong rally, with potential support at a lower level.

The Euro continues to strive over the greenback as rate cut expectations near. The pair has moved over 200 pips since the beginning of May and is now hitting some resistance at the 1.0900 zone. The latest bounce has met some selling pressure, and the subsequent U-turn could move prices back to the base of the rebound at 1.0780. Its breach would invalidate the bullish momentum and cause a sell-off. A move past 1.0920 would resume the rally.

AUDUSD bounces back
AUDUSD Chart: AUDUSD faces resistance with key support at a lower level and potential double bottom.

The Australian dollar slipped as price action hit the resistance zone of 0.6700. Choppy waves in the market have led to another sell-off as the focus now shifts to the recent double bottom at 0.6590. The RSI’s double top in the overbought zone could temporarily limit any bullish fever, and 0.6630 is the closest support in case of a retracement. A break at the said resistance area will bring 0.6750 into play.

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