Intraday Market Analysis – USD Finds Bullish Impetus.
AUDUSD struggles for support
The Australian dollar softens as lockdowns led to sharp job losses in August.
The pair has struggled to hold on to gains after 0.7400. Traders are testing supports as the initial surge fades.
A break below 0.7310 is a sign of weak buying interest. Then a breach below 0.7290 would lead to a test of 0.7245 which happens to be the 61.8% Fibonacci retracement level from the daily chart.
The resistance could cap a rebound at 0.7345 and rather be an opportunity to sell into strength.
USDJPY bounces off daily support
The US dollar surged after August’s upbeat retail sales took the market by surprise.
The greenback was bid up by a buying-the-dips crowd on the daily support (109.10) when the RSI showed an oversold situation. The indicator’s bullish divergence pointed to a loss in the sell-off momentum.
The break above the immediate resistance at 109.75 would prompt sellers to cover their positions. 110.15 is a key hurdle ahead and a bullish breakout may raise volatility and jump-start a new round of rally in the dollar.
GBPUSD falls through trendline
The US dollar’s rally across the board puts the sterling on the defense.
The pair has been climbing along a rising trendline. Then it met stiff selling pressure in the daily supply zone near 1.3900. An initial fall below 1.3800 indicated a lack of conviction in the rebound after a repeatedly overbought RSI.
The invalidation of the trendline would turn sentiment upside down with buyers cashing in.
1.3730 is the next support as the firesale gains traction. On the upside, the bulls will need to lift 1.3840 before they could hope for a bounce.
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.
