Intraday Market Analysis – Psychological Level

Intraday Market Analysis – Psychological Level

EURUSD retraces to major support

Intraday Market Analysis – Psychological Level - 1

The euro pulled back after the block’s CPI dropped to 0.8% in April. Though the pair maintains its bullish trajectory from the daily chart’s perspective, a healthy pullback seems necessary for buyers to catch up after it rose back above the last leg of sell-off (1.1990).

With an RSI deep in the oversold area, the psychological level of 1.2000 near the 20-day moving average would be a critical level to test buyers’ confidence.

The rally would only resume if the euro climbs back to the previous high at 1.2150,

GBPJPY exhibits bearish MA cross

Intraday Market Analysis – Psychological Level - 2

The Japanese yen gained traction after the unemployment rate fell to 2.6% in March. The pound falls back in search of the next support as the yen recoups losses across the board.

The RSI’s double top in the overbought area was an indication of exhaustion past the key resistance at 152.00. A breakout below 151.00 would confirm the bearish MA cross.

The next level to find potential buying interest would be around 150.10. On the upside, the long side will need to lift 152.10 to resume the U-turn.

SPX 500 tests resistance-turned-support

Intraday Market Analysis – Psychological Level - 3

The S&P 500 consolidates recent gains as rebounding corporate profits raise investors’ risk appetite. Buyers are striving to hold above 4180 after they cleared the former supply zone.

A rally above 4219 would open the path to a new high above 4300. However, a slide below could dent the short-term fever and trigger profit-taking.

4140, the lower band of the previous consolidation range would be a major support to monitor.

Its breach could lead to a deeper correction towards the rising trendline (4050) on the daily chart.

John Benjamin Macro-Analyst at Orbex

John Benjamin is a Macro-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.