Intraday Market Analysis – USD Holds High Ground

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USDJPY tests key resistance

The US dollar edged higher after Fed officials reiterated the need to keep tightening. The pair has recouped most of the losses from a previous liquidation, which suggests solid buying interest at 140.50 along the 30-day moving average. The peak at 145.90 is a key resistance and its breach could resume the rally towards August 1998’s high at 147.60. From the daily chart’s perspective, sentiment remains upbeat and the bulls may see pullbacks as opportunities to stake in. 143.60 is the first level should this happen.

AUDUSD fails to bounce back

The Australian dollar falls as risk appetite remains subdued across assets. The pair went into a free fall after it broke last summer’s lows near 0.6700. The bearish mood still prevails and may continue to attract trend followers to depress the price action. 0.6300 is the next level to see whether the buy side could make its way back. The RSI’s oversold condition might cause a bounce and 0.6500 would be the first obstacle. The support-turned-resistance 0.6700 on the 20-day moving average could offer strong downward pressure.

UK 100 breaks critical support

The FTSE 100 struggles over UK rate rise worries to support a battered pound. A fall below the critical area and psychological level of 7000 is a strong signal that the market has slipped into bearish territory. After the RSI recovered into the neutral zone, a brief consolidation could be the last chance for the bulls to bail out before another round of sell-off. Waning buying has met stiff selling near the fresh resistance at 7050. A bearish MA cross suggests an acceleration to the downside. Last March’s low at 6770 would be next.


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