Intraday Market Analysis – USD In Overbought Conditions

Gold & the USDX: Correlations

USDCHF tests daily resistance

Intraday Market Analysis – USD In Overbought Conditions - 1

The US dollar carries on its rally as the SNB sticks with ultra-loose policy.

Strong momentum above 0.9090 indicates that the directional bias has shifted to the upside as sellers rush to bail out. The rebound is now testing the resistance at 0.9200 on the daily chart.

The RSI shows overextension and could lead to a temporary pullback. The former supply zone near 0.9070 and the 30-hour moving average is the first support.

0.9270 is the nearest resistance when buyers renew their pressure.

AUDUSD tanks to critical demand area

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A drop in Australia’s unemployment rate barely lifted its currency as traders’ prices in the US taper.

The breakout below the demand area at 0.7600 is a sign of mounting bearish pressure. 0.7530 is a critical support to safeguard the uptrend from a medium-term perspective. Its breach could trigger an extended sell-off leading to a reversal.

An oversold RSI is rising back to the neutral area.

A combination of profit-taking and fresh buying may lift the price to the immediate resistance at 0.7640.

UK 100 retreats to key support

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The FTSE index consolidates as traders ponder inflation threat post-FOMC.

The rally above May’s high at 7160 is a bullish sign though short-term data-driven volatility is unlikely to die down. 7200 has capped buyers’ attempts to push higher and is now a key hurdle.

A dip below 7135 may force leveraged buyers to abandon ship, especially when a divergent RSI points to a loss in the upward momentum.

7100, a resistance-turned-support is an area of congestion as it lies on the 20-day moving average.

Gold & the USDX: Correlations

Jing Ren is a Macro-Analyst at Orbex. Jin has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. Jing applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.