Intraday Market Analysis – From Support To Resistance
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USDJPY rises to major resistance
The Japanese yen stayed muted after the Bank of Japan revised down its inflation forecasts.
The bearish MA cross on the daily time frame may weigh on the US dollar as it recovers towards 108.90, a previous daily support now turned into a resistance.
The rally above 108.20 in the short-term has prompted some sellers to cover reducing the downward pressure. A close above 108.50 would help gain momentum.
As the RSI shows an overbought situation, 108.20 would be the first support In case of a retracement.
EURGBP tests triple top
Euro buyers are encouraged by news of easing of restrictions in Italy and France. The pair has risen back to the major support area around 0.8720-0.8730.
After the failure of the first test, strong bids have supported the price to form a triple top. Would the third time be the charm?
A neutral RSI gives buyers enough space to play around. A breakout above 0.8730 would confirm the bullish MA cross on the daily chart and trigger a rally towards 0.88s.
On the downside, a drop below 0.8670 may drive the correction down to 0.8630.
GER 30 consolidates near a record high
The German index stagnates as the earnings season kicks off in Europe. Last week’s sell-off below 15180 was a sign that buyers took profit after the index made a series of record new highs.
On the daily chart, the uptrend is so far intact as the price action hovers above the 20-day moving average. 15410 is the immediate resistance and a bullish breakout would resume the upward movement.
However, a breach below 15090 could dent the short-term optimism and trigger a new round of sell-off to 14800.
