Intraday Market Analysis – USD Sees Few Bids

By Orbex

USDJPY tests key support

The Japanese yen finds support as June’s unemployment rate fell below 3%.

A bearish MA cross on the daily chart is likely to cloud buyers’ mood. The pair has met stiff selling pressure near 110.60.

The FOMC whipsaw was a sign that sellers still retain control since the downturn started earlier this month. 109.40 is a key support and its breach would invalidate last week’s rebound. Sellers would then be eager to push below 109.00.

On the upside, a bounce will need to clear 110.20 to make the mood turn around.

USDCHF in a deeper correction

The US dollar tumbled as US GDP growth in Q2 came out below market expectation.

The breakout below 0.9120 was a confirmation that the bears have gained the upper hand following a three-week-long consolidation. Bearish sentiment accrued as momentum traders jumped in aggressively.

The price is heading towards the psychological level of 0.9000, right above the critical support (0.8930) on the daily chart.

An oversold RSI may cause a limited rebound which is likely to be capped by 0.9165.

US 30 breaks to new highs

The Dow Jones index found support from the prospect of continuous stimulus in the US.

The index consolidated its gains after it rallied above the peak at 35100. 34800 is a fresh support as buyers have a stake in after the breakout confirmation.

US indices lately have been exhibiting a volatility pattern in which a sharp drop is followed by strong bidding.

While sentiment remains generally positive, a deeper pullback here may test 34500. As the rally resumes, 35500 would be the next target.

By Orbex