Intraday Market Analysis – Deeper Correction
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USDJPY continues to pull back
The US dollar struggles to find buyers amid dovish FOMC minutes.
The pair has met stiff selling pressure near the psychological level of 111.00 from last March. An RSI divergence was an indication that the rally was already losing steam.
A breakout below 109.30 could trigger a deeper correction to the demand area between 108.40 and the 30-day moving average found on the daily chart.
A rebound will need to lift offers around 110.55 first before more buyers would commit their chips.
USOIL awaits breakout
Oil prices came under pressure after data showed an increase in US oil production at the end of March.
The upbeat sentiment has softened after the US crude dipped below the 20 and 30-day moving averages for the first time in four months. The bearish MA cross may attract more sellers.
On the hourly chart, the price action is currently in a rectangle consolidation between 57.20 and 62.20.
A bearish breakout could trigger a broader sell-off towards 52s, while 64.70 would be the immediate target on the upside.
UK 100 tests major resistance
The FTSE 100 has reached a three-month high after Boris Johnson confirmed that the UK’s economy would reopen next week.
The index is rising along the 20-hour moving average and is heading towards the previous high at 6960. A breakout above that major resistance could open the door to the pre-covid level (7400).
The RSI has entered the overbought area and may draw a temporary pullback. In this case, the resistance-turned-support 6805 would be the level to watch for trend followers.
