Intraday Market Analysis – EUR In Fragile Rebound

EURUSD faces psychological resistance


The euro rises back after ECB officials’ comment that global inflation is of a temporary nature.

Indeed, the pair is consolidating, which is usually the case following a strong directional movement.

The RSI has recovered into the neutrality area. Its divergence indicates a slowdown in the sell-off. 1.1925 is the immediate resistance. Its breach would lead to the psychological level of 1.2000, where sellers are likely to double down.

A break under 1.1850 may trigger a 100-pip sell-off towards 1.1750, a critical daily support.

AUDUSD tests daily support


The Australian dollar is under pressure after flat retail sales numbers in May.

The sell-off below the major daily support (0.7550) and the lower range of a near six-month consolidation, are a strong bearish signal for the coming weeks. The pair is hovering above the next support at 0.7475 from the daily timeframe.

On an intraday level, the RSI has recovered from an extremely oversold situation. The bullish divergence suggests a loss in the downward momentum. A rebound will need to clear 0.7550 to gain traction.

US 30 recovers to key resistance

Dow Jones

While the Dow Jones index recovers some of last week’s losses, sentiment, however, remains downbeat.

Price action has fallen below 33300, a critical support on the daily chart. While it would be too soon to call it an outright bearish reversal, the index is likely to go sideways in the short term.

The technical bounce may face stiff selling pressure around 34100, a demand zone turned into a supply zone as trapped buyers await to bail out unscathed. 33400 is the closest support when an overbought RSI falls back.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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