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Intraday Analysis – USD shows weakness

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EURUSD bounces back

Chart of EURUSD

The US dollar gave up some gains after the PCE showed a cooldown in May. The pair’s trajectory has turned corrective after it came into the supply zone of 1.1010 from the May sell-off. A fall below the recent swing low of 1.0850 shook out the weak hands then a subsequent bounce off 1.0835 next to the 30-day SMA might give the bulls a second chance. 1.0940 is the first level to crack and its breach would foreshadow a bullish continuation above 1.1010, confirming the bullish MA cross on the daily chart in the process.

USDCAD finds support

Chart of USDCAD

The Canadian dollar slipped after the economy narrowly avoided a contraction in April. A bounce above 1.3220 has prompted sellers to cover and eased the downward pressure. 1.3290 from a previously brief rebound is the closest resistance should momentum carry on. Then the daily support-turned-resistance of 1.3350 which sits on the 30-day SMA is a critical ceiling to lift before the greenback could initi ate a broader recovery. On the downside, 1.3200 is the first support for the bulls to consolidate their gains.

US 30 revisits recent peak

Chart of US30

The Dow Jones 30 soared after US inflation showed signs of slowing down. After a brief pause under 34000, a jump above this psychological level has helped the bulls regain control of the short-term direction. June’s peak of 34500 is a key resistance where the bulls may take some chips off the table. A bullish breakout could pave the way for an extension to a 14-month high of 35500. 34050 is the closest support as the RSI ventures into the overbought area, and buyers may see a limited pullback as an opportunity to stake in.

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