HomeContributorsTechnical AnalysisUSD Consolidates Recent Gains

USD Consolidates Recent Gains

EUR/USD grinds critical floor

The US dollar consolidates amid worries about the debt ceiling stalemate. The euro’s drop below 1.0940 has led short-term buyers to liquidate their positions. The pair is testing 1.0840 from the start of a breakout rally in mi-April. This is a critical floor to maintain the single currency’s lead and a bearish breakout would open the door for a drop towards the March lows of 1.0550. The RSI’s oversold situation has attracted some bargain hunters and they have to clear the support-turned-resistance at 1.0940 to ease the pressure.

AUD/USD attempts to bounce back

The Australian dollar recouped some losses after hawkish RBA meeting minutes. The pair is striving to hold on to its gains from the rally earlier this month with the base of the bullish breakout at 0.6630 as an important level to keep the aussie’s edge. A close above 0.6700 is an encouraging signal and the bulls will need to lift 0.6750 before they could hope for a sustained extension. On the downside, a bearish breakout would expose the double bottom (0.6580) on the daily chart which is a critical floor in the medium-term.

Dow Jones 30 awaits breakout

The Dow Jones 30 steadies as traders wait for a breakthrough in the US debt-ceiling talks. The index is still consolidating its gains after breaking above 33500. 32950 is the current support where buyers have stepped in, but 33800 has proven to be a tough level to crack after two consecutive failed attempts. Its breach would bring the price back to the major supply zone around 34300 where a breakout could trigger an extended recovery towards 35000. On the flip side, a deeper correction may send the price to 32300.

At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading.

Featured Analysis

Learn Forex Trading