Intraday Analysis – Oil tests key floor – Orbex Forex Trading Blog

NZDUSD hits resistance

The New Zealand dollar faltered after the RBNZ vowed to keep its cash rate unchanged. On the daily chart, the pair has slipped below May’s lows and the round number of 0.6000, putting immense pressure on those who previously jumped on the dip. A limited bounce has fallen short of offering a relief and letting trapped long positions out. Only a clear cut above the demand-turned-supply zone of 0.6100 would improve the market mood. Otherwise, a new round of sell-off would send the kiwi to 0.5850 then 0.5800.

GBPUSD bounces back

Cable rallied after July’s CPI and retail sales beat expectations. The pair is still hovering above June’s swing low of 1.2600 as trend followers look to maintain the pound’s upward trajectory in the medium-term. The recent spike at 1.2800 is a major obstacle after it signalled tough resistance overhead. A bullish breakout would prompt sellers to cover their bets and put Sterling on a steady rebound towards 1.3000. On the downside, a fall below the immediate support of 1.2690 would expose the critical floor at 1.2600.

USOIL struggles for support

WTI crude fell as China’s ailing property market raised concerns about its economy. As the daily RSI creeped into the overbought area, the bulls may need a breather after they cleared the April high of 83.40. A drop below the psychological level of 80.00 between the 20 and 30-day SMAs has put 78.70 as the last layer of defence before a deeper correction. A lack of follow-through bids would break the current momentum and trigger a sell-off to 76.80. 81.30 is a fresh resistance to clear before a recovery could take place.

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