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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.