USD/JPY grinds supply zone
The US dollar extended gains on the NFP momentum. On the daily chart, the 30-day SMA (131.10) has been acting as a tough resistance and its latest breach suggests that bearish sentiment has waned. A tentative break above 132.80 exposes the support-turned-resistance of 133.30 and potentially the daily resistance of 134.70. An overbought RSI may limit the range of the initial surge for now. 131.60 is a fresh support in case a consolidation takes place, and the psychological level of 130.00 a second layer of defence.
EUR/GBP pulls back
The euro stalled after the bloc’s retail sales fell short of expectations in January. On the daily chart, the pair is making another attempt above the psychological level of 0.9000 where a near 300-pip upper wick showed a rejection last September. A break above last month’s high of 0.8895 combined with a bullish MA cross reinforced the upward bias. Though a correction cannot be ruled out as a bearish RSI divergence shows a deceleration in the momentum. 0.8880 is the first demand zone should this happen.
Dow Jones 30 seeks support
The Dow Jones 30 struggles as strong US job growth cast doubt on a rate cut later this year. The laborious grind around 34000 has met stiff selling pressure under the daily resistance of 34360. A shooting star candle showed a strong rejection of the upside and a subsequent drop below the base of a previous engulfing candle at 33700 means a lack of follow-through. 33500 is a key support at the lower end of the recent consolidation range. Its breach would send the index to the critical floor at 33000.
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.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0800 amid weaker US Dollar
EUR/USD is trading sideways above 1.0800, consolidating gains in early Europe. The pair is struggling, despite a better risk tone and a broadly weaker US Dollar. Growing recession fears are capping the upside in the pair. ECB-speak awaited.
GBP/USD climbs above 1.2300 ahead of Bailey
GBP/USD has scaled above the critical resistance of 1.2300 amid a cheerful market mood on Tuesday. The US Dollar drops alongside the US Treasury bond yields amid receding global banking fears and a dovish Fed policy outlook. All eyes on Bailey's testimony.
Gold bears prod $1,960 support as bank fears ease
Gold price drops to a fresh intraday low of $1,955 as bears struggle to retake control, after an earlier retreat, during Tuesday’s European session. The bright metal’s latest weakness could be linked to the market’s optimism.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.