Intraday Market Analysis – NASDAQ in Search of Support.
NAS 100 tumbles after exhaustion
Tech stocks slip as investors’ bet on a US recovery favors traditional sectors in their asset rotation.
The recent peak above 14000 could lead to a pullback as investors may think twice before chasing higher highs. A quadruple top near 14050 and a repeatedly overbought RSI are a sign of exhaustion.
After a halt at 13950 a breach below 13720 triggered a sell-off exacerbated by profit-taking. This would add pressure on traders who are still on the long side. 13340 would be the next support level.
AUDUSD drops below consolidation range
The Australian dollar eased off following the RBA’s commitment to keeping the policy loose for another three years.
The pair has so far failed to overcome the supply area at 0.7820 on the daily chart. The two-week-long consolidation suggests a lack of conviction from the long side.
A bearish close below the lower band of the current range would trigger a sell-off as buyers try to bail out. 0.7675 could be temporary support.On the upside, 0.7766 is the first hurdle to lift before a recovery could carry on.
NZDUSD falls from supply area
The New Zealand dollar clawed back some losses after the country’s unemployment rate dropped to 4.7%.
The pair is heading south after having met tense selling pressure near the daily resistance at 0.7300. Strong momentum below 0.7150 then 0.7125 is an indication that buyers are currently out of the picture.
0.7210 may cap a brief rebound after the RSI went into oversold. A fall below 0.7120 could deepen the correction.
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