Intraday Analysis - Monday, Aug. 3

USDJPY looking for another low

The dollar stopped short of turning things around after last week’s intervention by Japan’s Ministry of Finance.

• The pair heads towards 157.00 as traders look for a confirmation break at this level.

• 157.40 is the level to see if more bears will step in before the pair extends lower.

• The RSI’s move towards the oversold area could see a test at 159.00, before a possible lift towards 160.75.

EURGBP hits rejection

As the pair hit a new low around 0.8550, a potential bullish divergence on the RSI suggests a loss of momentum as prices find some support.

• A break below 0.8550 would provide confirmation and prompt more buyers to cover.

• The former support of 0.8480 could be the last obstacle standing in the way of a substantial sell-off.

• On the upside, a spike above 0.8600 would undermine sellers’ efforts and trigger a rally to test the previous high above 0.8660.

US 30 Index tests daily support

The Dow holds steady as the market digested the recent Fed announcement.

• Spikes in price action suggest the index is testing the previous swing low around 52000.

• The top of a limited bounce at 52600 is the first hurdle to clear.

• In case of a bearish breakout, a move past 52400 opens up 51800 at the base of the breakout rally.