USDCAD struggles for support
The Canadian dollar rose after January’s CPI exceeded expectations. The recent triple top near 1.2800 at the origin of the January sell-off is a sign of strong bearish pressure.
A combination of profit-taking and new selling means that sentiment is yet to make a decisive turnaround. The bulls will need to push past this major daily resistance before the US dollar could recover to 1.2960.
Failing that, a drop below the lower band (1.2640) of the current consolidation range would bring the pair to 1.2560.
GBPCHF attempts breakout
The sterling finds support from upbeat readings in the UK’s CPI and retail sales.
The rally came under pressure in the supply zone around 1.2600. A retreat below 1.2500 has shaken out some weak hands but the sentiment remains upbeat. A subsequent bounce off the demand zone (1.2470) suggests solid interest in keeping the pound afloat.
A break above the said resistance would trigger momentum buying and open the door to last October’s high at 1.2760. On the downside, a deeper retracement would test the next support at 1.2380.
USOIL shows signs of overextension
Oil prices faltered after a surprise rise in US inventories. WTI hits resistance at September 2014’s high (95.50).
The RSI’s repeated overbought situation on the daily chart may restrain the bullish fever. A bearish RSI divergence on the hourly time frame indicates a loss of momentum in the short term. 89.10 is the closest support that sits along the 20-day moving average.
Buyers could be waiting to enter at pullbacks. A deeper retreat could trigger a sell-off towards 84.00, which is a demand zone from January’s breakout.
