Forex Trading Library

Intraday Market Analysis – USD recoups losses

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EURUSD on corrective path


The US dollar jumped as traders made room for the Fed minutes later in the day. The euro’s consolidation at the end of December has failed to achieve a new high. A sharp drop below the demand zone 1.0580-1.0610 confirms exhaustion and is typical of a liquidation after the pair enjoyed a two-month long uninterrupted rally.

The daily support at 1.0450 is the level to see if buyers start to come back. Otherwise, the correction could send the price to 1.0300. The support-turned-resistance at 1.0590 is the first hurdle to clear.

USDCAD bounces back

Chart of USDCAD

The Canadian dollar softens as risk-sensitive currencies take a backseat amid the greenback’s rally. From the daily chart’s perspective, the medium-term bias remains upward and the bulls have been waiting for an opportunity to stake in. A quick swing between 1.3510 and 1.3610 has narrowed the trading range, paving the way for the next one. A bullish breakout indicates that the path of least resistance is up and 1.3700 is a major obstacle ahead. Its breach would help the bulls regain control. 1.3600 is the closest support.

UK 100 tests major ceiling

Chart of UK100

The resources heavy FTSE 100 outperformed thanks to energy stocks. A pop above 7550 may have put the index back on track, sending sellers to cover their bets. 2022’s top around 7650 is the last obstacle and a bullish breakout could trigger a runaway rally with momentum buyers joining the party. Then a new high above 7800 could be in store. After the RSI shows an overbought situation, a limited pullback may attract buyers in the former supply zone near 7510. 7410 is a key level to keep the bounce intact.

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