USD/JPY enters supply area

The US dollar struggles to bounce higher as high inflation seems temporary.

The previous sell-off below the demand area near 109.80 has spoiled the recovery mood. The former support has turned into a resistance and so far capped the greenback’s advance.

The pair is in horizontal consolidation while the RSI returns to neutral conditions.

110.30 would be the next hurdle if the price action turns around. A fall below 109.20 could trigger another round of sell-off towards 108.60, a major support on the daily chart.

USDJPY

NZD/USD capped by falling trendline

The New Zealand dollar sees profit-taking in anticipation of this week’s FOMC.

The pair has been in extended consolidation after it broke above the daily resistance at 0.7300. The descending trendline indicates increasing selling pressure.

The kiwi has a well-established demand zone around 0.7115, a key support from the daily chart. As the RSI rises back from an oversold situation, buying interest could push the pair towards the trendline (0.7180).

The ten-week-long rally may resume only if the price breaks out.

NZDUSD

US 30 consolidates gains

The Dow Jones Industrial Average rallies as the recovery goes in full swing in the US.

The latest whipsaw barely dented investors’ faith. The index has recouped most of the losses from the May sell-off. Buyers have been building their stakes above the 30-day moving average (34350). 34750 is the key resistance intraday, its breach may send the price action to the peak at 35100.

On the downside, a deeper correction would test the critical demand area between 33500 and 33700 from the daily chart.

Chart

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

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD extends gains beyond 1.1820 after mixed US data

EUR/USD has extended its gains above 1.1820 after Durable Goods Orders missed expectations but the CB Consumer Confidence exceeded them. US yields are on the backfoot. Covid and infrastructure headlines are eyed.

EUR/USD News

GBP/USD soars toward 1.38 on UK covid optimism, dollar weakness

GBP/USD is trading close to 1.39, surging higher. The pound benefits from the drop in British covid cases while the dollar turned down after rising earlier. The US published mixed data.

GBP/USD News

Gold battles $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Crypto markets bleed after Amazon denies rumors; uptrend intact

Bitcoin price is experiencing a pullback after rallying 38% to tag $40,000. Ethereum price promptly follows BTC as it eyes a retracement to the $2,018 support level.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more

Majors

Cryptocurrencies

Signatures