Forex Trading Library

Intraday Analysis – Dax struggles for support

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EURGBP holds onto gains


The pound slipped after September’s retail sales saw a larger-than-expected contraction. A decisive break above the recent peak and daily resistance of 0.8700 indicates that the bulls’ have doubled down on an extended rebound. 0.8780 is the upcoming target and 0.8830 at the origin of the liquidation in May is the next milestone and its breach could pave the way for a bullish continuation in the medium-term. As the RSI dropped back from the overbought area, 0.8700 is the first level to expect follow-up support.

CADJPY bounces back


The Canadian dollar stalled after data showed a decline in retail sales in August. On the daily chart, the mood remains upbeat with a rebound at 108.00, keeping the September breakout rally intact. Even though 109.90 has seen some selling pressure the bulls may not have had their last word yet with a bounce off the psychological level of 109.00. A clean cut above the said hurdle would raise bids to the short-term peak of 111.10. Failing that, a drop below 109.00 might put the major floor of 108.00 at risk.

GER 40 breaks lower

GER 40 CHART 23-10

The Dax 40 falters over a double whammy of the Middle East conflict and rising bond yields. A fall below the base of a previous bounce at 15100 suggests that the bears are still in control of the direction, forcing buyers of the latest round to bail out. Their switching sides has exacerbated the volatility and pushed bids lower. As the mood turns downbeat again, the bulls might be wary of catching a falling knife. Last March’s low of 14500 could be where they drew a line in the sand. 14970 is the first hurdle to clear to ease the pressure.

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