Intraday Market Analysis – EUR Seeks Rebound Opportunity.
EURUSD hovers under psychological resistance
The euro bounced back after the core PCE of the US stayed subdued in May.
After rallying above 1.1910, price action has turned this former resistance into a support base. The current consolidation could be an accumulation phase for the buy-side.
Early bulls are aiming at the psychological level of 1.2000. A bullish breakout would force sellers to unwind their positions and trigger a recovery above 1.2100.
In the meantime, buyers could be getting involved while the RSI is in the neutral area.
GBPJPY tumbles from supply zone
The sterling continues to suffer from BOE’s warning against “premature tightening”.
The pair has met stiff selling pressure in the supply zone around 155.20, a major resistance from the daily chart. The sell-off has accelerated after the support at 154.20 failed to hold.
The subsequent drop below 154.00 was a confirmation of the bearish MA cross. 154.50 has become a resistance. 153.10 is the next support as the RSI bounces off an oversold situation. Below that, the price may retrace all the way back to 152.00.
US 30 breaks above multiple resistances
The Dow Jones recouped recent losses as investors’ buy-in for Biden’s infrastructure deal.
The bulls have successfully pushed past 34100 then 34350. This indicates that the lack of selling interest has helped buyers regain the upper hand.
Momentum traders seem unfazed by an overbought RSI so far. The index is heading towards 34750, a supply zone from the previous sell-off. A bullish breakout would open the door to the peak at 34850.
On the downside, the psychological level of 34000 has turned into a key support.
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