Forex Trading Library

Intraday Analysis – USD finds strength

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GBPUSD probes resistance

The pound inched higher as GDP growth beat expectations in the second quarter. The pair is looking to find a bottom after a 10-week long retracement with the daily RSI deeply sunk into the oversold zone. A combination of profit-taking and buying the dip has triggered a bounce off 1.2110, confirming the bullish RSI divergence. A close above 1.2280 would extend the rebound to the support-turned-resistance of 1.2420 near the 30-day SMA, where a bullish breakout could open the door to a sustained recovery.

USDCAD breaks higher

The Canadian dollar slumped after July’s GDP came out short of expectations. The previous bounce met stiff selling pressure at 1.3540 at the base of a sell-off in mid-September. However, a subsequent retreat secured bids in the demand zone near 1.3420. A clean break above 1.3540 forced sellers to cover, fuelling the bullish momentum and foreshadowing a potential bullish continuation in the days to come. 1.3480 is now a fresh support and 1.3600 the intermediate hurdle to lift before the pair could test the recent peak of 1.3690.

US 30 struggles to rebound

The Dow Jones 30 fell back as the US PCE remained stubbornly high in August. As sentiment is still cautious, a limited bounce above 33300 might be driven by profit-taking with the bears taking some chips off the table after a two-month long correction. On the hourly chart, 33900 is a fresh resistance and only its breach would prompt more sellers to cover and ease the bearish pressure. On the downside, a fall below the floor at 33300 would trigger a new round of sell-off and send the index to last May’s low of 32600.

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