Intraday Market Analysis – USD Struggles To Bounce
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The Australian dollar rallied after Q3 inflation exceeded expectations.
A bullish MA cross on the daily chart indicates an acceleration in the upward movement. Pullbacks are likely to attract a ‘buy the dips’ crowd.
The pair has been consolidating its recent gains above 0.7450, a former major resistance that has turned into support. A close above 0.7545 may extend the rally to last July’s high at 0.7610.
On the downside, a deeper retracement would test the demand area between 0.7380 and the psychological level of 0.7400.
USDNOK maintains bearish trend
The Norwegian krone keeps the high ground supported by continued strength in oil prices.
Sentiment has remained downbeat after a break below the daily support at 8.4700. Rebounds have so far been checked by solid selling interest.
The current sideways action under 8.4100 could be another phase of distribution. Then the bears would be pushing towards June’s low at 8.2400, the last support before reaching this year’s low at 8.1500.
8.4800 near the 20-day moving average would be the second resistance in case of a bullish attempt.
UK 100 resumes rally
The FTSE 100 breaks higher as confidence grew after fresh highs on Wall Street. The rally above August’s high at 7220 is an indication of a strong commitment from the long side.
Breakout candles and a bullish MA cross confirm that the uptrend has resumed. The index is now on its way to the pre-pandemic level around 7550.
7350 would be an intermediate hurdle as an overbought RSI may trigger some profit-taking. 7220 has become fresh support if the bulls need to catch their breath.
