Intraday market analysis: Bullish turnaround

Jing Ren Orbex

NZD/USD recovers above daily MA

The New Zealand dollar gained support after the RBNZ kept its monetary policy unchanged.

The Kiwi has found an effective floor above the psychological level of 0.7000 after a week-long sideways action.

A breakout above the consolidation range (0.7070) has triggered a runaway rally as the short side scrambles to cover.

On the daily chart, the surge above the 30-day moving average suggests that the recovery could extend further if 0.7180 is lifted. 0.7045 is the immediate support in case of a pullback.

USD/JPY falls to medium-term support

The prospect of the Fed to maintain the low rate course continues to drive the US dollar lower.

On the daily chart, the pair has come under pressure at the psychological level of 111.00 while the RSI made a double top in the overbought area. The sell-off is heading towards the first major support at 108.40.

On an hourly chart, the RSI’s triple dip into the oversold territory could lead to a temporary rebound. 109.60 is the hurdle on the upside where intraday traders may look to sell into strength.

NAS 100 breaks into new high

Growth stocks are making a comeback as receding Treasury yields make risk assets attractive again. A bullish close above February’s high at 13908 suggests that buyers have returned.

The NASDAQ index may resume its uptrend as market sentiment improves.

After hitting the milestone at 14000 the market may take a moment to digest the new record high while the RSI falls back into the neutrality area.

The demand zone between the previous lows at 13670 and 13800 may be of trend followers’ interest.

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.

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