Forex Trading Library

Intraday Analysis – DAX tests floor

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USDCAD seeks support

The Canadian dollar jumped after better-than-expected employment data in August. The pair is still trying to hold onto its recent gains after a series of higher lows indicating strong buying interests. However, a bearish RSI divergence showed a deceleration in the upward thrust and a subsequent fall below 1.3630 elbowed out some leveraged positions and made 1.3690 a fresh resistance. 1.3590 at the confluence of the base of the latest breakout rally and the 20-day SMA is an important level as the rally needs to take a breather.

EURGBP attempts to bounce

The pound softened over signs of a slowdown in hiring in Britain. The price has stabilised above 0.8530 with recent swing highs forcing sellers to cover their bets. As the single currency consolidates its gains above the resistance-turned-support of 0.8560, the bulls may see it as an opportunity to accumulate before they could push higher in the next few days. A rally above the recent ceiling of 0.8610 could trigger an extended recovery to this summer’s peak of 0.8700. On the downside, 0.8530 is a key level to keep the bounce intact.

GER 40 grinds critical floor

The Dax 40 struggles as the ECB may stay on track to raise interest rates. The recent rebound came to a halt at a previous swing high of 16050, suggesting that the bears are still in control of the direction. 15550 at the origin of that rebound is a critical support to keep the quote afloat as its breach would force the bulls to bail out in mass, potentially causing a deeper correction towards 15200. 15780 is the first hurdle to clear to ease the increasing downward pressure and then once again 16050 would stand between a recovery or a sell-off.

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