Intraday Market Analysis – Dax keeps bullish bias

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Intraday Market Analysis - Dax keeps bullish bias

USDCHF hits resistance

The US dollar softened after Fed policymakers cheered the news of easing inflation. On the daily chart, the pair has remained under pressure after a tentative break below last April's low of 0.9200.

The current rebound from this critical level has led to a consolidation. Though the greenback must clear the recent swing high and daily resistance at 0.9400 before it would attract buyers. A bullish reversal could take shape should this happen. Otherwise, renewed selling pressure would send the pair towards 0.9100.

EURGBP tests support

The pound recouped losses as the UK's economy avoided a contraction in November. However, overall sentiment still favours the single currency. A break above the higher band (0.8870) of the consolidation range means that the bulls are still in charge of the price action. A pullback would be seen as an opportunity to stake in and join the trend. The previous low of 0.8830 is the first support and further down 0.8770 on the 20-day moving average is a critical floor. 0.8930 from last September's sell-off is the target.

GER 40 grinds higher

The Dax 40 extends gains as markets go risk-on post-US inflation. A bullish MA cross on the daily chart confirms increased risk appetite after a rally above last June's high of 14650. As the RSI repeatedly flirts with overbought territory, a pullback may catch the eye of bullish followers. Another sign of exhaustion comes from the hourly chart where a bearish RSI divergence shows a loss of momentum. 14960 is the immediate support in case the index takes a breather. 15400 at the start of a sharp sell-off in February is the target.

The post Intraday Market Analysis - Dax keeps bullish bias appeared first on Orbex Forex Trading Blog.

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