Forex Trading Library

Intraday Analysis – CAD Drifts Lower

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USDCAD breaks higher

The Canadian dollar softened after July’s employment data missed estimates. The US counterpart has made its way back to last month’s peak of 1.3380 as sellers were prompted to cover their bets, driving the quote up. A bullish breakout would turn the tables by confirming the bullish MA cross on the daily chart and help the greenback regain the upper hand in the medium term. 1.3440 then 1.3500 at the origin of a liquidation in June would be the next target with 1.3320 as the first support as the RSI drops back into the neutral area.

EURGBP grinds higher

The euro advanced after better-than-expected retail sales in June. After the price secured a foothold over 0.8550, the bulls seem to have gained the confidence to push higher. The latest spike to 0.8650 has further put the sell side under pressure and 0.8680 near the recent peak could be their last stronghold and a breakout may trigger an extended rally towards 0.8770, leading to a sustained recovery in larger time frames. On the downside, 0.8595 is the immediate support and 0.8550 a critical level to keep the rebound bias intact.

US 30 falls back

The Dow Jones 30 retreats as high US wage growth raises fears of more monetary tightening. The mood has turned cautious at 35660 with an overbought RSI on the daily chart calling for a breather after three weeks of uninterrupted rally. A drift below the previous swing low of 35250 has put late-comers on the defensive but could be an opportunity for early buyers to take profit. 35000 over the 20-day SMA is the level to see if trend followers would support the market or if the index could be vulnerable to a deeper correction.


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