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18 Oct

Intraday Market Analysis – USD Struggles For Support

October 18, 2021

By Orbex

EURUSD attempts a bullish breakout

EURUSD

The US dollar retreated after retail sales fell below 1% in September. The euro’s rally above 1.1570 has led some short interests to close their positions.

The pair is testing the key resistance at 1.1640, which coincides with the 20-day moving average and the first resistance on the daily chart. A bullish breakout could pave the way for recovery to 1.1750.

However, buyers could be hesitant to commit after an overbought RSI caused profit-taking. In case of a pullback, 1.1540 is fresh support to keep the current rebound relevant.

NZDUSD tests key resistance

NZDUSD

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The New Zealand dollar rallies as Q3 inflation beats estimates.

After a few days of sideways action, the indecision ended with a break above 0.7020, the origin of the last sell-off. In turn, this set the kiwi on a bullish course.

Sellers would scramble to get out after their failed attempts to push lower. An overbought RSI may cause a temporary pullback.

0.7040 is the immediate support, then 0.6980 is the second line of defense in case of a deeper correction. A close above 0.7110 would lift the pair towards the previous peak at 0.7170.

GER 40 heads towards major hurdle

DE40

The Dax 40 bounces higher as the market bets on a prolonged low-interest environment.

The major floor at 14800 has seen strong buying interest as traders bought the dip. A bullish close above 15200 has put the short side under pressure. Then a rally above the 30-day moving average indicates further commitment from the buy-side.

The momentum could slow down momentarily as the RSI shows an overbought situation. 15300 would be the first support. A break above the daily resistance at 15700 may resume the uptrend.

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