Intraday Analysis – USD consolidates gains
USDCAD bounces off critical floor
The Canadian dollar retreats as the annual CPI showed a deceleration last month. The pair is still holding on to the February’s lows around 1.3300 with traders buying the dip in this major demand zone. The former support at 1.3430 is the first hurdle to lift to ease the downward pressure. Then the bulls will need to clear 1.3550 near the 30-day SMA before they could hope for a sustained recovery. Otherwise, a break below the critical level of 1.3300 would force buyers to bail out and trigger a bearish reversal in the medium-term.
EURGBP hits resistance
The pound bounces back as solid wage growth raises the odds of BoE rate rise. On the daily chart, the pair is consolidating its gains over 0.8720 which shows strong enough interest in keeping the bullish bias intact in the medium-term. However, intraday actions may see some choppy waters after the bulls hit a wall at 0.8860. 0.8810 is the first support with 0.8760 at the base of the current bounce as a second line of defence. A close above 0.8860 may attract momentum buyers and send the pair to March’s high of 0.8920.
US 30 extends further
The Dow Jones 30 steadies as the first-quarter earnings season kicks off. A bullish MA cross on the daily chart after the index cleared the March high of 33600 is a sign of improved sentiment after the index started the year on the defensive. The bulls would flush out the remaining selling interests if they manage to lift offers at the year’s peak of 34400, then the path would be clear for an extension towards the all-time high of 37000 from January 2022. On the downside, 33600 has become a support in case of a pullback.