Intraday Analysis - Friday, August 7

AUDUSD(Australian dollar) looks to get back on track

The AUDUSD(Australian dollar) continues to climb after breaking through another hurdle.

• The pair continues the recovery and is on its way to test the next level at 0.7080.

• A break above this key resistance would open the door to 0.7150.

• In the meantime, an overbought RSI could cause a limited fallback, especially if intraday buyers decide to close some positions.

• 0.6980 would be the first support in case a break occurs at 0.7035.

USDCHF slowly retracing

The US dollar remains subdued as traders digest signs of a weak economy.

• On the chart, sentiment has turned from cautious to bearish.

• A move below this week’s low of 0.8060 is a strong sign of liquidation, with the remaining buyers scrambling to exit the market.

• As the RSI remains undecided, 0.8000 is a critical support.

• The recent bounce could prove pivotal, with 0.8150 the target if sentiment turns around.

US 100 falls lower

The Nasdaq pulls back from record territory, with stocks across the board remaining bullish.

• Despite this drop, the psychological level of 30000 has seen a buildup in buying pressure, and a subsequent pop above this area could clear out the sellers.

• As trend followers join in, they could see any fallback as an opportunity to buy.

• 29400 is a firm support to stop any signs of a fall towards 28200.