The pound jumps higher as the US dollar weakens across the board, post-NFP.
The bullish RSI divergence was a warning that the sell-off had lost steam.
The rally above 1.3820 suggests that sellers have started to take profit. Strong upward momentum is the first sign of a potential reversal. A bullish MA cross may attract more buyers to fuel the rebound.
The RSI is flirting with the overbought area. A break above 1.3930 would open the door to 1.4000. 1.3820 is the immediate support if the sterling falls back.
NZDUSD faces key resistance
The New Zealand dollar consolidates recent gains as the market goes risk-on.
After giving up most of the recent gains, the kiwi found support at 0.6950. By clearing the psychological level of 0.7000 the bulls are sending the signal that there is still hope for a U-turn.
The RSI has again ventured into the overbought territory.
0.7095 remains a major hurdle ahead after a failed attempt. Its breach would make 0.7150 the next target. Below 0.7010 the pair could retest the base of the rebound at 0.6950.
US 30 rises along trendline
The Dow Jones climbs back as investors bet on a dovish Fed for the foreseeable future.
The rally above last June’s high, at 34850, indicates that the buy-side has overwhelmed the sell-side. The index keeps rising relentlessly along a bullish trendline established in late June.
Sentiment remains upbeat and the bulls are aiming for May’s peak at 35100, a prerequisite for a new record high.
An overbought RSI may trigger limited retracement. 34720 along the trendline is the immediate support in case of a pullback.
This information has been prepared by Orbex, a trading name of Orbex Group Limited. DrForexOfficial, will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Join Orbex and for all the support you need from an award-winning Forex Broker - https://bit.ly/2PsTjKM. Click here to join our telegram channel (t.me/DrForexOfficial1) and stay updated with the latest headlines.
Leave a Comment :
We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.
Trading CFDs on leverage involves significant risk of loss to your capital.
Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. The Website should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. DrForexOfficial, will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Read our full legal disclaimer.