Mon, May 29, 2023 @ 22:03 GMT
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USD Continues to Recover

AUD/USD seeks support

The Australian dollar bounced after the RBA minutes showed that another rate hike was considered. On the daily chart, the price is still in a flag-shaped consolidation following its break below this year’s low of 0.6700. This might temper any bullish velleity in the short-term as the bigger picture remains downbeat. 0.6800 has kept the aussie in check with a spike suggesting a rejection of the upside. 0.6680 is the level to see if the bulls are ready to step in and offer support. Otherwise, the swing low of 0.6620 is a critical floor.

USD/JPY bounces higher

The US dollar climbs amid growing expectations of a 25 bp hike from the Fed in May. Sentiment has turned positive in the short-term with the pair achieving a series of higher highs despite choppiness. The greenback has secured a solid foundation above 131.00 then 132.00. A close above 134.00 may carry the price to the start of the March sell-off at 135.00 where stiff selling pressure could be expected. As the RSI drops back to the neutral area, 133.00 is the first level to see a follow-through. 132.00 is key in keeping the bounce intact.

GER 40 grinds higher

The Dax 40 steadies as investors remain optimistic ahead of earnings reports. A bullish MA cross on the daily chart indicates an acceleration to the upside after a break above this year’s peak of 15700. Following a brief consolidation, the bulls are now pushing towards the all-time high of 16300 from January 2022 with the psychological level of 16000 as the first hurdle ahead. The rising trend line from this month’s bounce off 15500 offers dynamic support to the index with 15760 as the closest level to monitor.

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