Intraday Analysis – USD holds high ground
EURUSD tests critical floor
The euro dips further over weaker-than-expected eurozone GDP in Q4. On the daily chart, the pair came under pressure on the 30-day SMA (1.0700). A subsequent liquidation below 1.0630 then 1.0550 has invalidated the rebound from the end of February. The pair is hovering above this year’s low and the daily support of 1.0480. A break below this critical floor might trigger a bearish reversal in the weeks to come. As the RSI recovers into the neutral area, short-covering may send the euro to the first resistance at 1.0590.
USDCAD breaks higher
The Canadian dollar softened as the Bank of Canada left its interest rate unchanged. A convincing break above December’s high (1.3700) would signal the end of the flag-shaped consolidation on the daily chart, bringing most buyers out of their hibernation. A bullish continuation would send the greenback to its five-month high of 1.3980 with 1.3850 as the immediate resistance. On the hourly chart, 1.3740 is the closest support and 1.3630 at the base of the current surge is a key level to keep the momentum going.
XAUUSD grinds major support
Gold struggles as the dollar index trades near a three-month high following Powell’s hawkish testimony. The precious metal has given up all gains from its bounce earlier this month, putting the bulls on the defensive. As the price revisited the bottom at 1807, the RSI’s oversold condition attracted bargain hunters. But buyers must lift multiple hurdles before they could turn sentiment around. 1833 is the first resistance and the selling pressure may increase all the way to 1845. 1785 would be next in case of a bearish breakout.