By Orbex
USDJPY consolidates gains
The US dollar rallies as the 10-year Treasury yield hits a three-year high. Price action has been treading water after it bounced off 121.30.
The RSI shot back into the overbought area and could limit the upward momentum. Sentiment remains bullish but subdued volatility suggests a lack of volume. The recent peak at 125.00 is a major hurdle and its breach could resume the rally.
On the downside, a break below 122.70 could lead to an extended consolidation. 121.30 is a critical floor to keep the short-term rally intact.
EURCAD struggles to rebound
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
The Canadian dollar strengthened after a drop in the jobless rate in March. The RSI’s double-dip in the oversold area has attracted some buying interest.
A break above the demand-turned-supply zone around 1.3700 has improved the short-term mood. The origin of the previous sell-off at 1.3840 is a major resistance, as it sits on the 20-day moving average, making it a congestion area.
A bullish close could pave the way for a meaningful rebound. Failing that, a retreat back below 1.3600 may resume the downtrend.
GER 40 seeks support
The Dax 40 struggles on concerns about the economic costs of war in Ukraine. A bullish MA cross on the daily chart suggests steadied sentiment in the medium-term after a V-shaped rebound.
The bulls may see the pullback as an opportunity to accumulate. They will need to clear February’s sell-off point at 15500 before the uptrend could resume.
On the intraday level, a drop below 14200 prompted buyers to exit, making 14430 a fresh resistance. A break below 14050 may cause a deeper correction towards 13600.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- US Fed tilts towards a rate cut despite the postponement. HKMA left the rate unchanged at 5.75% May 2, 2024
- Brent crude oil hits seven-week low May 2, 2024
- Target Thursdays: USDJPY, Copper & EURCAD May 2, 2024
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024
- Expert Says Now Looks Like a Good Time To Buy This Renewable Energy Stock Apr 30, 2024
- Optimism over corporate earnings is fueling stock indices. The Hong Kong index reached a 5-month high Apr 30, 2024
- FXTM’s Copper: Hits fresh two-year high! Apr 30, 2024
- European indices grow on the ECB’s “dovish” position. Quarterly reports of mega-companies support the broad market Apr 29, 2024
- Japanese yen shows volatility amid speculation of intervention Apr 29, 2024
