USD bounces higher
|EUR/USD breaks demand zone
The US dollar surged over fewer jobless claims last week. A fall below 1.0200 has weighed on sentiment, invalidating the latest bounce. The former support has turned into a resistance. The euro’s failure to hold above the previous consolidation area at 1.0120 suggests that the directional bias is still down. The RSI’s oversold condition may attract some bargain hunters, but buyers need to clear 1.0200 before the pair could get back on track. 1.0030 is the next support and a breach could trigger momentum selling below parity.
USD/JPY continues to recover
The Japanese yen softened as July’s core CPI was in line with expectations. A break above this month’s high at 135.50 indicates renewed interest in the US dollar. As the uptrend remains intact in the medium-term, the bulls may look for opportunities to accumulate. An extended recovery could pave the way for a trend continuation. 137.40 at the start of a sell-off in late July is an important resistance. Its breach may carry the pair to the recent peak at 139.40. On the downside, 134.80 is the first support in case of a pullback.
NAS 100 consolidates gains
The Nasdaq 100 consolidates as the Fed stays committed to raising rates to rein in inflation. The market mood further improved after a close above last May’s high at 13500. However, the RSI has edged again into the overbought zone on the daily chart and suggests that the bull run could use some breathing room. The index is consolidating its gains above 13280 which coincides with the 20-day moving average. Buying interest could be expected in this congestion area. A rally above 13700 could lift offers towards 14200.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.