Intraday market analysis – Deeper correction

Jing Ren Orbex

USD/JPY continues to pull back

The US dollar struggles to find buyers amid dovish FOMC minutes.

The pair has met stiff selling pressure near the psychological level of 111.00 from last March. An RSI divergence was an indication that the rally was already losing steam.

A breakout below 109.30 could trigger a deeper correction to the demand area between 108.40 and the 30-day moving average found on the daily chart.

A rebound will need to lift offers around 110.55 first before more buyers would commit their chips.

US oil awaits breakout

Oil prices came under pressure after data showed an increase in US oil production at the end of March.

The upbeat sentiment has softened after the US crude dipped below the 20 and 30-day moving averages for the first time in four months. The bearish MA cross may attract more sellers.

On the hourly chart, the price action is currently in a rectangle consolidation between 57.20 and 62.20.

A bearish breakout could trigger a broader sell-off towards 52s, while 64.70 would be the immediate target on the upside.

UK 100 tests major resistance

The FTSE 100 has reached a three-month high after Boris Johnson confirmed that the UK’s economy would reopen next week.

The index is rising along the 20-hour moving average and is heading towards the previous high at 6960. A breakout above that major resistance could open the door to the pre-covid level (7400).

The RSI has entered the overbought area and may draw a temporary pullback. In this case, the resistance-turned-support 6805 would be the level to watch for trend followers.

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.