Forex Trading Library

Intraday Market Analysis – USD in consolidation mode

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USDCAD hits resistance

USDCAD

The Canadian dollar softened as November’s inflation reading showed signs of slowing down. On the daily chart, the uptrend remains intact and a bullish MA cross indicates solid support and a potential acceleration to the upside. However, the pair is still grinding the supply area around 1.3700 as the pressure builds up. A breakout would lead to a test of November’s peak at 1.3800, which would be a step closer to a bullish continuation. On the downside, 1.3530 next to the 30-day moving average is the first support.

USDCHF tests critical floor

USDCHF

The US dollar steadies as consumer confidence climbed to an eight-month high in December. Still, the pair has given up all the gains from its rally earlier this year, which shows a lack of commitment to keep the dollar rolling. The mood is still downbeat as the pair drifts lower and is capped by a series of lower highs, the latest being at 0.9370 right under the 20-day moving average. Last April’s low of 0.9210 has attracted some bargain hunters but its breach could trigger a new round of sell-off to 0.9100.

USOIL grinds higher

USOIL

WTI crude edges higher over a larger-than-expected draw in US inventories. The commodity has so far found support at a 12-month low also the psychological handle of 70.00. Then a brief retracement saw follow-up bids over 73.50, suggesting solid interest from the buy side. A break above the recent high of 77.70 would open the path towards the daily resistance at 82.50 where renewed selling could be expected. Its breach, however, would put the oil price back on track. 75.80 is a fresh support in case of weakness.

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