Intraday Analysis – USD Needs a Fresh Catalyst

<div><img width="750" height="430" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080830/Intraday-4.png" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Technical Analysis 4.8.2023" decoding="async" loading="lazy" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080830/Intraday-4.png 750w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080830/Intraday-4-300×172.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></div><h2><strong>GBPUSD bounces back</strong></h2>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-205918" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04075925/GBPUSD-3.png" alt="GBPUSD 4.8.2023" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04075925/GBPUSD-3.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04075925/GBPUSD-3-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04075925/GBPUSD-3-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04075925/GBPUSD-3-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /><br />
Cable consolidates after a modest rate hike of 25 basis points by the BoE. The pair has been drifting lower after it broke below dynamic support by the 30-day SMA (1.2800). From a daily chart perspective, the swing low of <strong>1.2600</strong> is a critical level to keep the uptrend momentum going as its breach could open the door to a deeper correction. A bullish RSI divergence suggests a slowdown in the sell-off though and could attract some buying interest. A break above 1.2730 would be a confirmation leading to a test of <strong>1.2880</strong>.</p>
<h2><strong>USDCHF probes resistance</strong></h2>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-205919" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080001/USDCHF.png" alt="USDCHF 4.8.2023" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080001/USDCHF.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080001/USDCHF-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080001/USDCHF-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080001/USDCHF-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /><br />
The US dollar steadies as the market awaits the nonfarm payroll catalyst. A series of higher lows above 0.8700 suggests that traders have taken profit on gains from the steep drop earlier last month. The rally is also an opportunity for the greenback to probe for resistance. <strong>0.8800</strong> next to the 30-day SMA is the current level to see if the bears would sell into strength. <strong>0.8710</strong> is the first support and a breakout would force early buyers to abandon ship and send the pair to the base of the rebound at 0.8600.</p>
<h2><strong>SPX 500 sees correction</strong></h2>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-205920 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080028/US500.png" alt="US500 4.8.2023" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080028/US500.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080028/US500-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080028/US500-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/04080028/US500-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /><br />
The S&amp;P 500 retreats as bond yields jump amid lacklustre corporate earnings. The price has turned south from a 16-month high of 4600 and a two-legged sell-off below 4530 indicates that the buy side has trimmed its exposure, leaving the index vulnerable to a correction. <strong>4480 </strong>over the 30-day SMA is a key level to see if the bulls would draw a line in the sand as the RSI sinks into oversold territory. They will need to push back above <strong>4540 </strong>to ease the selling pressure and prevent a new round of selling towards 4400.</p>
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