EURUSD bounces back
The US dollar pulls lower as the market expects the Fed to keep rates on hold at today’s policy meeting. The pair is looking to claw back the losses from last week’s steep fall. Clearing the support-turned-resistance of 1.0720 would bring the single currency to the previous swing high of 1.0770 which coincides with dynamic resistance from the 20-day SMA, making it an important price cap for the short-term, and its breach could trigger a runaway rally above 1.0800. On the flip side, further weakness would press the pair below 1.0650.
USDCAD struggles to stabilise
The Canadian dollar soared after an uptick in inflation ignited worries about more rate hikes by the BoC. A slip below the demand zone from the daily support of 1.3500 has dented the bullish mood, forcing more buyers to exit and wait for signs of stabilisation. 1.3370 at the base of a previous bullish thrust is where bargain hunting has driven the quote back up, then the bulls will need to lift the familiar level of 1.3500 before they could initiate a sustained recovery. Otherwise, the pair could be subject to a deeper correction.
XAUUSD tests resistance
Gold inched higher as the greenback treaded water ahead of a potentially dovish FOMC. The price has accumulated strength after rising above the key threshold at 1930 and is about to test the last key pivot at 1946 near this month’s peak. A bullish breakout may end the current four-month-long consolidation and resume the uptrend in the coming weeks. In the meantime, short-term bulls could face their first test if the rally takes a breather. 1923 is the closest support and 1910 the bulls’ second line of defence.
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