Intraday Analysis – USD claws back some losses
AUDUSD seeks support
The Australian dollar retreated after the RBA’s meeting minutes deemed its policy restrictive enough. The newly formed double top at 0.6900 is a sign of tempered enthusiasm after last week’s rally. A combination of profit-taking and fresh selling has driven the quote lower in search of new support. 0.6770 is the first level to see if buyers start to accumulate again. Further down, 0.6680 is a major support to maintain the recovery bias. A close back above 0.6900 would extend the rally beyond the psychological level of 0.7000.
NZDUSD consolidates gains
The New Zealand dollar softened over a slowdown in the Q2 inflation reading. A break above the key supply area of 0.6380 formed by April’s and May’s highs suggests a strong bullish drive, forcing sellers to cover their bets and potentially opening the door to a sustained recovery in the medium-term. As the dust settles, the price is consolidating its gains with the former resistance of 0.6240 as the closest support. The RSI’s oversold condition may attract some buying interests and 0.6340 is the first hurdle to clear.
USDCAD tests resistance
The Canadian dollar struggles as inflation fell to a 27-month low in June. Sentiment remains cautious after the greenback’s bounce earlier this month failed to hold. The immediate resistance of 1.3230 coincides with the 30-day SMA, making it an important price cap, though a tentative break has revealed some bullish velleity. A confirmation needs to be in the shape of a decisive breakout which would ease the pressure and expose the support-turned-resistance of 1.3300. 1.3090 is a critical floor to prevent further sell-off.