USD initial jobless claims came better then expected and that put the pair into retracement mode in NY session. Prior to that, USD experienced a strong sell off. Due to USD weakness and techs being aligned with fundies -USDCAD dropped perfectly following the techs. See the USDCAD analysis. DAX was also down 2 % and US equities were pretty high and correction was needed. Now we see a retracement in the form of V shape reversal and 119.20-119.40 region might give a resistance. There is a confluence of previous buyers/now moment sellers, 61.8, L3 and intra week trendline. Little below the level is also a confluence of L4 and 50.0 (119.14) though on V shape reversal, price might jump higher breaking that first l4/50.0 confluence. Anyway it should react at that particular level before coming to POC zone. That could be a another signal for a short towards daily lows at 118.40 which might happen later.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to holds above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.