Intraday Market Analysis – Awaiting A Breakout

March 23, 2021

EURUSD consolidates near the support area

The US dollar stayed subdued as Treasury yields retreated on Monday, relieving pressure on its European counterpart.

The pair has fallen back from the double top at 1.1990 after it went into an overbought situation. The euro is looking for support while hovering above the major demand area around 1.1830.

The current consolidation is an opportunity to build up momentum. The resistance at 1.1990 is a tough nut to crack but a bullish breakout could send the price towards 1.2050.

GER 30 retreats after being overbought

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Equity markets are treading water at the start of the week as investors remain cautious about the inflation outlook.

The DAX 30 has pulled back from the all-time high at 14810 after the RSI continuously ventured into the overbought area. Instead of chasing the momentum buyers may likely wait for a discount before jumping on the trend.

The previous low at 14400 coincides with the rising trendline and could be a key zone of congestion where trend-followers would bid up the index.

USOIL recovers from daily support

The oil price has recouped some losses from concerns about vaccine rollouts and new lockdowns in parts of Europe.

The RSI has recovered into the neutral zone as the price found support in the demand area around 58.50 on the daily chart. WTI is now at a crossroad as a deeper retracement could trigger a reversal.

Otherwise, what is happening could be a mere three-wave correction. As for now, the 38.2% Fibonacci level (62.00) is the next resistance.

The uptrend may only resume if buyers can push through 64.80 once again.

By Orbex