Intraday Market Analysis – NASDAQ Holds Despite Whipsaw.
NAS 100 bounces off trendline
The Nasdaq index whipsaws as investors fear that the economic recovery may stall.
Sentiment remains upbeat as the composite rebounds from a seven-week-long rising trendline. This congestion area includes the former resistance at 14560 which has turned into key support.
Trend followers were quick to see the oversold RSI as an opportunity to double down on the bullish bandwagon.
14830 has now become a hurdle and a bullish breakout could lead the index to the historic high at 15000.
USDCHF falls from daily resistance
The Swiss franc shot up as markets grew weary of the Delta variant spread. Whereas, the US dollar has stumbled on the supply area around 0.9275 from the daily timeframe.
Last Friday’s attempts below 0.9200 have shown weakness in the upward impetus. Following a feeble rebound, the dollar’s clean-cut through said support confirms the bearish turn. An oversold RSI may cause a limited rebound.
Once below 0.9140, the greenback could be vulnerable to an extended sell-off towards 0.9080.
EURJPY slips below psychological support
The Japanese yen rallies amid surging demand for safe-haven currencies.
The break below the psychological level of 130.00 has invalidated the rebound in late June. Sellers are still in control of the action after the bearish MA cross.
The euro is now hovering near the critical support (129.60) on the daily chart. A bearish breakout could push the pair towards 128.90.
In the meantime, an oversold RSI may prompt early bulls to test the water. The base of the latest sell-off at 131.00 is a major resistance ahead.
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