Intraday Market Analysis – USD Consolidates Gains

USDJPY tests first support

USDJPY

The Japanese yen remains under pressure as the BoJ extends the easing program.

The US dollar has met strong resistance at last April’s high at 110.80. The price action then found bids near 110.20, a former resistance turned into a support.

Sentiment remains positive as long as buyers hold above 109.80.

The RSI is rising back from a sub-40 level, leaving room for a potential rebound. A break above said resistance may resume the five-month-long rally and push the price to March 2020’s high at 111.70.

EURGBP attempts bullish reversal

EURGBP

The pound retreated after some disappointing UK retail sales figures in May.

The surge above the immediate resistance at 0.8570 is a sign of profit-taking from the short side. Now that 0.8540 has established itself as a support, price action will need to consolidate its gains, before a reversal could materialize.

The bullish MA cross may attract buying interest, though a high RSI could briefly temper the bullish fever.

A break above 0.8610 would prompt more sellers to cover and extend the rally to 0.8640.

GER 30 plunges towards daily support

DAX

The DAX 30 tumbles as investors rebalance their portfolios post-FOMC.

The index had struggled to hold onto the record high of 15800. The sharp sell-off below the support at 15550 is a sign that buyers are bailing out.

Stop-losses from leveraged trades compound to the downward momentum. The RSI shows an oversold situation.

From a medium-term’s perspective, the uptrend is still intact and the correction may attract bargain hunters above 15100. 15480 has become the immediate resistance level.

Won't your trader friends like this?
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.

Leave a Reply

*