Intraday Market Analysis – USD sees pause in sell-off

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Intraday Market Analysis - USD sees pause in sell-off

USDJPY strives to bottom out

The US dollar edged higher after Fed officials cautioned about tempering rate hikes too soon. The pair has found support at the origin (138.00) of a breakout rally in late August. A bullish RSI divergence in this key demand zone shows a slowdown in the sell-off momentum. A stabilised price action suggests that some buyers have started to accumulate. 142.40 is the first hurdle ahead. The bulls need to push above 145.00 before they could turn short-term sentiment around. A fall below the said support would lead to 136.00.

NZDUSD consolidates gains

The New Zealand dollar retreats as risk appetite subsides amid recovering US Treasury yields. A break above September's high of 0.6150 is another step in the kiwi reversal course, increasing strains on the short side. However, 0.6200 is a major supply area where the pair could come under renewed selling pressure. 0.6060 is the first support and its breach may prompt leveraged long positions to take profit. Further down, 0.5950 would be the bulls' second line of defence. A successful bounce may open up the path above 0.6300.

NAS 100 seeks support

The Nasdaq 100 slips as few jobless claims suggest that the labour market remains tight. The RSI's multiple ventures into overbought territory and its bearish divergence indicate potential exhaustion in the latest ascent. As sentiment remains downbeat in the medium-term, the index has been probing resistance rather than building up a sustained rally. The zone around the psychological level of 12000 and 12100 is the obstacle before September's peak of 12800. A fall below 11550 would trigger a correction towards 11200.

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