Intraday market analysis: Dow Jones tests all-time high


US 30 challenges peak

The Dow Jones 30 index holds near its historic high on upbeat investor sentiment.

The break above 35330 has signaled the bulls’ commitment to maintain the upward bias, while 35200 is fresh support.

An oversold RSI has attracted the buying-the-dips mentality.

Price action has recouped the most recent losses and is now testing the peak at 35630. A bullish breakout may extend the rally towards the milestone at 36000. A deeper pullback would lead to the critical floor at 34700.

US 30

USD/JPY awaits breakout

The Japanese yen inched higher after a drop in July’s unemployment rate. The pair is in a narrowing trading range following its bounce off the demand zone at 109.10.

Sentiment remains optimistic as long as price action stays above this critical level.

However, the bulls may encounter selling pressure at 110.50 from the August sell-off. A bullish breakout would attract momentum buyers and extend the rally to above 111.00.

On the downside, a break below 109.50 would lead to a retest of buyers’ resolve.

USDJPY

NZD/USD tests major resistance

The US dollar continues to weaken across the board from the post-Jackson Hole hangover. The Kiwi is at a crossroads as it climbs back to the daily resistance at 0.7050, the origin of the previous sell-off.

A bullish breakout would prompt sellers to cover their bets and lay the groundwork for a reversal.

0.7100 would be the next target. However, the RSI’s multiple ventures into the overbought territory may temper the bullish fever.

The base of the momentum at 0.6940 is the key to keeping the recovery valid.

NZDUSD

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD jumps to three-week highs near 1.1650 amid falling dollar, yields

EUR/USD is trading close to 1.1650, recovering ground to clinch three-week highs. The pair cheers risk-on mood-led decline in the US dollar. Treasury yields pullback, as poor US industrial data tempers hawkish Fed’s expectations. Focus on ECB and Fedspeak.

EUR/USD News

GBP/USD advances towards 1.3800 amid risk-on mood, hawkish BOE

GBP/USD is advancing towards 1.3800, reaching the highest levels in five weeks. The greenback is losing ground amid a resurgent appetite for riskier assets. BOE's Bailey hinted at a rate hike to contain inflation. UK PM Johnson vowed to fix Brexit’s N. Ireland Protocol. 

GBP/USD News

Gold rebounds towards key $1795 barrier but downside risks remain intact

Gold price extended Friday’s sell-off on Monday to test the $1760 level but managed to recover some ground to settle the day around $1765. Lack of first-tier data to leave gold at the mercy of the dynamics in yield, USD.

Gold News

Litecoin on the cusp of 26% breakout

Litecoin price is on the penultimate leg of a technical formation that will catalyze a quick bull rally. LTC needs to clear one critical hurdle to kick-start a run-up to levels last seen more than a month ago. Litecoin price has been on a slow but steady uptrend since Oct 13.

Read more

Netflix Stock Price and Forecast: When are NFLX earnings?

Netflix stock falls nearly 1% on Friday ahead of earnings. NFLX releases earnings on Tuesday, October 19, after the close. Netflix stock has been boosted by the success of Squid Game.

Read more

Majors

Cryptocurrencies

Signatures