Forex Trading Library

Intraday Analysis – USD remains upbeat

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USDCAD breaks higher

The Canadian dollar softened after the BoC stayed put at its latest policy meeting. The greenback’s limited pullback has secured bids over the 20-day SMA (1.3490). Then a jump above the daily double top of 1.3650 is a strong bullish signal, forcing the remaining sellers to cover and paving the way for a bullish continuation in the medium-term. 1.3730 is the next target on the pair’s journey to this year’s peak of 1.3850. 1.3600 is the first support and 1.3550 on the 20-day SMA would be the bulls’ second line of defence.

EURGBP bounces back

The pound slipped after the BoE governor hinted at the near end of the tightening cycle. The pair is still striving to hold above 0.8500 and safeguard its latest rebound. A bearish breakout would shatter the bit of optimism left from previous bullish attempts and drive the bid towards 0.8400. On the upside, a close above 0.8575 would expose the swing high of 0.8610 and ease the downward pressure, and a bullish breakout may trigger a runaway rally to this summer’s peak of 0.8700. 0.8550 has turned into a fresh support.

SPX 500 looks for support

The S&P 500 fell as bond yields rose after stronger-than-expected services PMI. The rally has hit a roadblock at 4540 after lifting offers around 4500. A bearish RSI showed a loss of momentum in the bounce within the supply zone, suggesting that intraday buyers have taken some chips off the table. As the RSI sank into the oversold area, the index is looking to secure a foothold with 4430 at the base of the latest breakout rally as the first level to expect renewed buying interests. 4490 is the first resistance in case of a rebound.

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