Intraday Market Analysis – USD Cheers Momentum Catalyst

EURUSD tumbles through supports

The US dollar advanced as the US June CPI data beat expectations.

The pair has met stiff selling pressure in the supply zone around 1.1890 once again. Sentiment towards the euro is downbeat as long as it remains under the daily resistance at 1.1970.

The bears have seen recent rebounds as opportunities to sell into strength.

Below 1.1780 sellers have gained conviction and may push towards 1.1720 even though short-term traders may lift their feet off the pedal as the RSI goes oversold. A rebound is likely to be capped by 1.1830.

USDJPY confirms bullish MA cross

The US dollar continues to bounce back on solid inflation data. The pair saw strong buying interest at the demand zone near 109.50.

The breakout above the resistance at 110.60 confirms the bullish MA cross and overturns the bearish mood. Momentum may rise as sellers would rush to cover their bets.

111.20 would be the next target as the reversal gains traction. A retreating RSI in the neutral zone may allow buyers to build positions. 110.20 has established itself as the closest support.

UKOIL tests key supply zone

Brent crude rallies back on expectations of falling global inventories.

The previous sell-off has found support on the 30-day moving average (73.00). The recovery is making an attempt at 76.50, a former support that has turned into a supply zone.

A bullish breakout would signal that the bulls are back in the game. Then lifting the peak at 77.80 to resume the uptrend would be a formality.

In the meantime, a near-overbought RSI may cause some choppiness, and 74.90 would be the first support in case of a pullback.