Intraday Market Analysis – USD bounces back

NZDUSD tests key support

The US dollar soared after jobless claims showed resilience of the labour market. On the daily chart, the directional bias remains up with the pair seeking to secure a foothold. A previous sharp drop found support over 0.6200, but its failure to reclaim 0.6360 could be detrimental to the market mood.

Stiff selling pressure has led to a retest of 0.6200 and an oversold RSI attracted some bargain hunters in that demand zone. Its breach would reveal a lack of interest in the kiwi, reversing its trajectory for the next few days.

EURJPY sees slower momentum

The Japanese yen bounced over concerns that the BOJ could shift away from its ultra loose policy. The pair bounced off last September’s low of 137.50 and a vertical rise above the psychological level of 140.00 prompted some sellers to cover their bets. The RSI’s overbought situation has caused a temporary pause in the rally as buyers became wary of chasing higher bids. More short-covering could ensue if the euro stays above 139.40, fuelling the recovery. Then the daily resistance at 142.90 would be the next stop.

SPX 500 builds up breakout pressure

The S&P 500 goes sideways as investors await clues from the US nonfarm payrolls. On the daily chart, a bearish MA cross continues to weigh on sentiment. The horizontal consolidation indicates indecision and a breakout would release the tension like a spring, causing a potential spike in volatility. 3890 is confluent with the 3-day moving average and its breach could propel the index to 4020 at the origin of the previous liquidation. On the flip side, a drop below the lower band at 3780 would threaten the daily support at 3700.

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