Intraday Market Analysis – Awaiting A Breakout

EURUSD consolidates near the support area

(Click on image to enlarge)

eurusd

The US dollar stayed subdued as Treasury yields retreated on Monday, relieving pressure on its European counterpart.

The pair has fallen back from the double top at 1.1990 after it went into an overbought situation. The euro is looking for support while hovering above the major demand area around 1.1830.

The current consolidation is an opportunity to build up momentum. The resistance at 1.1990 is a tough nut to crack but a bullish breakout could send the price towards 1.2050.

GER 30 retreats after being overbought

(Click on image to enlarge)

ger30

Equity markets are treading water at the start of the week as investors remain cautious about the inflation outlook.

The DAX 30 has pulled back from the all-time high at 14810 after the RSI continuously ventured into the overbought area. Instead of chasing the momentum buyers may likely wait for a discount before jumping on the trend.

The previous low at 14400 coincides with the rising trendline and could be a key zone of congestion where trend-followers would bid up the index.

USOIL recovers from daily support

(Click on image to enlarge)

usoil

The oil price has recouped some losses from concerns about vaccine rollouts and new lockdowns in parts of Europe.

The RSI has recovered into the neutral zone as the price found support in the demand area around 58.50 on the daily chart. WTI is now at a crossroad as a deeper retracement could trigger a reversal.

Otherwise, what is happening could be a mere three-wave correction. As for now, the 38.2% Fibonacci level (62.00) is the next resistance.

The uptrend may only resume if buyers can push through 64.80 once again.

Disclaimer: Orbex LIMITED is a fully licensed and Regulated Cyprus Investment Firm (CIF) governed and supervised by the Cyprus Securities and Exchange Commission (CySEC) (License Number 124/10). ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.