Intraday market analysis: Bullish extension

Jing Ren Orbex

AUD/USD gains momentum as rally extends

Markets bid up the Australian dollar after the country’s unemployment rate dropped from 5.8% to 5.6% in March.

A brief pullback overnight near the 30-hour moving average (0.7700) was met with strong buying interest. The RSI’s easing from the overbought zone suggests that there could be more room on the upside.

The latest rally above 0.7750 may attract more momentum players into the bidding war. This might open the path to 0.7850, a key resistance on the daily chart.

USD/NOK tests lower band of the consolidation range

Surging oil prices have put the commodity-sensitive Norwegian krone on the launchpad against a soft US dollar.

Successive breakouts below 0.8470 then 0.8390 were a strong sign that the bias remains bearish.

The US dollar may carry on its downtrend following a three-month-long consolidation between 8.3200 and 8.7200. There is a chance of a temporary rebound as the RSI rises back from the oversold area.

8.3200 would be the next target while 8.4500 is the immediate resistance in case of a retracement.

UK 100 lifts January’s resistance

The FTSE 100 climbs higher as value stocks gain momentum amid the UK’s reopening.

The bullish close above January’s high at 6963 indicates that the bulls are still in charge of the price action despite recent profit-takings.

The next round of rally could set the pre-pandemic level above 7400 as the target in the weeks to come.

In the short term, the index will need to lift the psychological level of 7000. An overbought RSI may cause a temporary pullback, and 6920 would be the closest support in that case.

Author

Jing Ren

Orbex

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.