Our intraday forex analysis covers USDJPY, EURGBP, and SPX 500 bounce , focusing on key support and resistance levels and potential market direction.
USDJPY seeking support
The US dollar grinds lower across the board as buyers step back to assess the latest news from the Middle East. With the greenback losing its safe haven status, traders are looking for other opportunities.
- A subsequent break below 159.00 triggered a test at the recent support of 158.70.
- The pair looks for another move towards 160.00.
- 158.00 is the next level to see if sellers are making a comeback for a full recovery to the downside.
EURGBP double bottom lift
The euro is attempting a comeback as the pair looks to reverse April’s downturn. From the chart’s perspective, the pair is poised to inch higher despite choppy price action.
- A break above 0.8700 would put intraday sellers on the defensive, with 0.8740 in focus.
- The base of the recent double bottom at 0.8690 is a major level to maintain the directional bias.
- A fall below the said support could signal a bearish continuation towards 0.8660.
SPX 500 bounces back
The S&P jumped higher as fresh hopes for peace talks with Iran and the U.S. returned to the headlines. With stocks having their worst quarter in years due to the crisis, a move above 6900 has lifted sentiment.
- A break above the daily resistance at 7000 could lead to a fresh record high.
- With the RSI heavily overbought, traders will be wary of a price action turnaround.
- Any signs of exhaustion would see a test at 6730, with 6620 on the horizon.
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