Forex Trading Library

Intraday Market Analysis – USD bounces back

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USDCAD awaits breakout

The US dollar finds support from a stronger-than-expected jobs report in September. The pair has been consolidating its gains after a vertical ascent lately. An overbought RSI on the daily chart calls for a limited pullback as the bulls might be reluctant to chase after high bids. The price has bounced off 1.3500 and made its way back to the key resistance at 1.3780, where a breakout would signal a bullish continuation. Then the psychological level of 1.4000 could be within reach. On the downside, 1.3650 is the closest support.

XAUUSD pulls back

Gold slipped after the US dollar regained strength over upbeat nonfarm payrolls. The precious metal came under pressure near September’s high at 1730. As the RSI showed exhaustion, a combination of short-term profit-taking and fresh selling has kept the rally in check. A bullish breakout would force sellers out and attract momentum buyers instead, turning sentiment around. But for now, a drop below the round number at 1700 may send bullion to 1660 which is a critical support in keeping the rebound valid.

NAS 100 tests support

The Nasdaq 100 tumbles as the Fed is likely to stick to its aggressive hike policy. The index has previously bounced off its two-year low at 10840 and a break above 11500 temporarily eased the selling pressure. However, a swift U-turn near 11700 might have shattered hopes of a sustained recovery. A fall below 11300 has forced bulls to bail out. The new supply area around 11400 may attract stiff selling from trend followers. A break below 10840 would resume the downtrend and send the index towards 10400.

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