Intraday Market Analysis – USD Under Renewed Pressure

USDCHF sinks towards February’s low

The US dollar remains downbeat after Fed officials insisted that interest rates would stay low.

Buyers’ struggle to hold on to 0.8950, the origin of last week’s elusive rebound is an indication of a strong bearish bias. The psychological level of 0.9000 has capped the greenback’s advance after it turned into a resistance from a support previously.

An oversold RSI may prompt a brief bounce only to meet selling pressure ahead. February’s low at 0.8870 would be the next stop if the price falls below 0.8830.

AUDUSD holds above major support

The Australian dollar climbs as risk sentiment makes a timid return. The price action has so far met bids in the demand area around 0.7700, which is also a key support on the daily chart.

The general direction remains bullish as long as buyers succeed in holding this level. 0.7810 is the hurdle ahead after a failed attempt to break out last week.

Renewed momentum could put 0.7890 within reach. On the downside, a drop below 0.7700 may send the Aussie towards 0.7600.

SPX 500 recovers towards peak

The US index inches up as Treasury yields make a retreat. The rebound has clawed back most of the previous losses.

The peak at 4245 may see strong selling interest as a combination of profit-taking and fresh selling. A repeatedly overbought RSI could weigh on the intraday price action.

4150 is the immediate support in case of a pullback.

On the upside, a bullish close above 4245 would resume the uptrend after two weeks of consolidation. Interest from momentum buyers could push the index to 4300.