Intraday Analysis – the Dollar Remains Elevated – Orbex Forex Trading Blog

USDJPY double top resistance

Inflation data dropped again in Japan, which halted the yen’s decline against the dollar. On the chart, a bullish MA has failed to move above the recent double top above 151.00 in the near term. The pair could continue to consolidate as an ascending triangle emerges. 149.80 is fresh support, and 149.00 near the 20-day SMA would be the bulls’ second line of defence. A close above 150.80 would resume the rally, with November’s swing high towards 152.00 the next target.

EURGBP attempts to bounce

The pound holds on to its latest gains as the BoE remains hawkish. A sharp drop below 0.8560 has invalidated the previous bounce as bulls look for another upswing. The double bottom at 0.8530 has seen a slight 20-pip move, giving hope that another bullish rally has begun. However, a bearish breakout could pave the way for a reversal below 0.8500. The RSI’s oversold condition attracted some bids, and 0.8550 is the first hurdle. Should 0.8575 be broken, a fresh high at 0.8620 could be in sight.

SPX 500 another record high

The S&P 500 saw another record high after Nvidia drove prices higher. With a gap above the 5000 level, traders will once again question if a correction is just around the corner. A test at 5100 sees a slight pullback, but with stocks pushing the index higher, there is no reason why this level cannot be broken. The RSI shows some signs of a bearish divergence; however, this could be a minor retracement. A break at 5000 will be the first signal of a sell-off, before 4100 is tested.

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