Intraday Analysis – USD Pulls Lower

NZDUSD attempts to rebound

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Chart of NZDUSD

The US dollar slips as rising claims for unemployment benefits suggest a looser job market. After breaking below the daily demand zone around 0.6110, the kiwi has been struggling to find buyers. The directional bias in the medium-term remains down as a series of lower lows would continue to attract trend followers, but a snapback in shorter time frames cannot be excluded to alleviate the oversold situation. A break above 0.6100 may bring the kiwi to 0.6190 next to the 20-day SMA. 0.5990 is the immediate support.


XAGUSD lifts resistance

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Chart of XAGUSD

Silver recovers as expectations of an easing of the tight US labour market drag bond yields lower. A higher low and a break above the first resistance of 23.50 have eased the selling pressure. The rebound is likely to be driven by short-covering for now. A close above the confluence of the brief swing high of 24.20 and the 30-day SMA would attract stronger buying interests and send the metal to the former support of 24.70 where the mid-May sell-off started. 23.30 is the first support as the RSI drops back to the neutral zone.


NAS 100 bounces back

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Chart of US100

The Nasdaq 100 bounces back as slowing wage inflation lifts the hope of a rate hike pause. The index has consolidated its gains above 14220 after a parabolic ascent to a near 14-month high. As a show of force, the pullback has barely dented the upward momentum. Instead, trend followers saw in it an opportunity to stake in. A close above the recent peak of 14500 would carry the index to 14800 with a potential extension to the March 2022 high of 15250. Further below, 13900 along the 20-day SMA is an important floor.

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