Intraday Market Analysis – USD Struggles For Support

August 30, 2021

GBPUSD breaks resistance

The US dollar tumbled after Fed Chairman Jerome Powell said it was too early to withdraw support. The pair has seen solid buying interest at the daily support (1.3600).

After a short-lived consolidation below the key resistance at 1.3770, a bullish breakout is a sign of commitment from the buy-side. An overbought RSI may cause a limited pullback with buyers expected around 1.3700.

As sellers reverse their positions, 1.3820 would be the next target and its breach could open the door to July’s peak at 1.3980.

EURJPY challenges resistance

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The Japanese yen softens as risk appetite makes its return.

The fall below the daily support at 128.30 has increased the pressure on the single currency. The current rebound above 129.30 is an indication of the bulls’ resolve to safeguard the uptrend in the medium term.

130.40 is a major hurdle ahead as the origin of the August sell-off.

The RSI has repeatedly shown an overbought situation and a temporary pullback is due with 128.80 as support. Further down, the psychological level of 128.00 could see more bargain hunters.

GER 30 awaits breakout

The Dax 30 index rises as investors expect prolonged stimulus.

Price action is seeking support along the 30-day moving average after a new high above 15810. A first wave of profit-taking has made 15930 a key resistance. The bulls will need to push through once again before they could expect the rally to resume.

The RSI’s double-dip into the oversold area has attracted buying interest. 15650 is a major support to keep the short-term bullish bias intact. Failing that, there is a chance of a deeper correction towards 15440.

By Orbex