USDCAD seeks support
The Canadian dollar edged higher after its economy grew by 0.1% in October. The US counterpart had recovered along a rising trendline from mid-November but hit resistance in the supply zone between 1.3700 and last month’s high of 1.3800. A drop below the trendline has weighed on short-term sentiment, making 1.3520 the key support where a breach could cause a correction to 1.3400. The bulls will need to reclaim 1.3700 before the uptrend could regain traction in the medium-term.
AUDUSD bounces off key floor
The Australian dollar recovers over a rebound in risk appetite. Stiff selling at September’s high of 0.6880 had put a dent to the market’s recovery mood. Short-term traders have taken some chips off the table after an initial fall below 0.6770 which has become a fresh resistance. The current bounce off 0.6630 will need to clear offers ahead before it could gain a solid foothold, then the previous high of 0.6880 would be next. A bearish breakout might put the aussie at the risk of a bearish continuation in the medium-term.
GER 40 under pressure
The Dax 40 steadied as US PCE and durable goods showed a slowdown in November. On the daily chart, after the index hit June’s high of 14650 – a boundary between bearish continuation and bullish reversal, a bearish MA cross indicates souring sentiment. The sell-off below 14300 has put the bulls on the defensive. While the RSI’s oversold condition has attracted bargain hunters, they may be wary of taking big positions during a week of thin liquidity. 14150 is resistance and 13700 support from the mid-November extension.
