Intraday Analysis – CAD recoups losses
USDCAD grinds major support
The Canadian dollar soared as the BoC resumed its tightening campaign with another 25-basis point rate hike. A drop below 1.3500 has broken the pair’s upward momentum and prompted short-term bulls to bail out. The double bottom at 1.3320 on the daily chart is a critical floor to keep the greenback afloat as its breach would expose November’s low of 1.3230, a close call for a bearish reversal to 1.3000. 1.3450 is the first resistance and then the bulls must clear the supply zone around 1.3530 before a bounce could take hold.
XAUUSD hits resistance
Gold slides as traders price for more US Fed rate hikes following the BoC’s hawkish turn. Sentiment is struggling to remain upbeat from the medium-term perspective as the price continues to give up its gains from the March rally. A limited bounce has met strong resistance at 1985 which sits at the confluence of a former demand zone on the daily chart and the 20-day SMA. A fall below 1932 would trigger a new round of sell-off to 1870. 1970 is a fresh resistance and the bulls must clear 1985 before they can hope for a recovery.
USOIL bounces back
WTI crude bounces higher over Saudi Arabia’s decision on more output cuts. The price has found support at the psychological level of 70.00 at the base of the latest breakout rally. The bounce suggests that buyers may have made their way back from a double bottom (66.00) on the daily chart. A break above the previous swing high of 74.50 may attract momentum buyers and put the commodity on a bullish trajectory with 80.00 as a potential target. On the downside, a slip below 70.00 would again expose the floor at 66.00.