Forex Trading Library

Intraday Analysis – CAD outperforms

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USDCAD to test major support

Chart of USDCAD

The Canadian dollar surged after a blowout jobs report fuelled speculation about further tightening. The recent consolidation has failed to secure a foothold above 1.3370, which has turned into a fresh resistance. This suggests that despite multiple tests, 1.3470, right under the daily resistance of 1.3520 may continue to keep the greenback in check. Looking at the bigger picture, the pair is still in a descending triangle on the daily chart and 1.3260 at the lower boundary is a major level to keep the pattern intact.

EURGBP struggles for support

Chart of EURGBP

The pound slipped after December’s GDP showed a 0.5% contraction. The euro is still under pressure after a break below 0.8880, turning it into a resistance. The previous high of 0.8830 is the current support and coincides with the 30-day SMA on the daily chart. The RSI’s another venture into the oversold area attracted some interest but the bulls will need to reclaim 0.8930 before they could hope for a bullish continuation. A retest of the daily low and critical level at 0.8760 would threaten the uptrend in the medium-term.

GER 40 breaks lowerChart of DE40

Equities trade on a cautious note amid rising US Treasury yields. The Dax 40 has failed to hold on to its gains above 15400, prompting the bulls to scramble for the exit. A drop below the previous swing low of 15280 would confirm the lack of follow-up bids and potentially trigger a broader liquidation. The psychological level of 15000 at the confluence of the lower end of a previous consolidation and the 30-day SMA is a major floor. 15450 at the top of a brief rebound would be the first hurdle when buyers make their way back.

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