Forex Trading Library

Intraday Market Analysis – EUR may break higher

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EURUSD tests resistance

The euro rallies as September’s retail sales in the eurozone beat expectations. A close above 0.9950 has prompted some sellers to cover their positions. Then a tentative break above 1.0090 shows strong buying interest which could dictate the market’s next move. A valid breakout would propel the single currency to September’s high at 1.0190, a supply area from a previous sell-off, shifting sentiment to the optimistic side. As the RSI goes overheated, the demand zone near 0.9980 is the level to monitor in case of a pullback.

CADJPY awaits breakout

The Canadian dollar drifts lower as oil prices hit resistance. The latest rally came to a halt in the sell zone around 109.00. Still, on the daily chart, sentiment is extremely bullish after the loonie hit a 8-year high (106.50). The bulls may look at the recent consolidation as an opportunity to accumulate. 108.00 is the immediate support and 107.20 is the lower band of the range and a critical floor to keep the price afloat. A rally above the psychological level of 109.00 may resume the uptrend above 110s.

UK 100 holds onto gains

The FTSE 100 treads water over sluggish prospects for the housing sector. A bullish MA cross on the daily chart suggests an acceleration of the rally. The index is consolidating its gains after lifting offers around 7330 at the origin of a sell-off in mid-September. 7200 is the first level to gauge the strength of buying interest with 7080 as a second line of defence. A bounce back above 7340 is likely to carry the price action to the previous peak at 7500, which could be a step closer to reverse the bearish course in the medium-term.

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