Forex Trading Library

Intraday Analysis – USD pulls back

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USDCHF seeks support


The US dollar plunged after weak NFP cemented expectations that the Fed would hold interest rates steady. A drop below the closest support of 0.9010 led to a liquidation of intraday long bets. 0.8950 is the next threshold to see whether the bulls would step in. Sentiment would remain upbeat in the medium-term as long as the dollar holds above 0.8900, an important support on the daily chart. With the RSI in the oversold area, bargain hunting could be expected and 0.9030 is the first resistance level to clear to ease the pressure.

USDCAD to test critical support


The Canadian dollar bounces as the hope of the end of US rate hikes boosts risk assets. The US counterpart is struggling for support after it lifted offers near last March’s high of 1.3850. A dive below 1.3730 at the confluence of the 20-day SMA and the origin of the previous bullish breakout is a sign of a downbeat mood. 1.3580 on the daily chart is a critical floor to prevent a deeper correction to 1.3400. On the upside, the bulls will need to reclaim 1.3750 from the previous demand zone to help the greenback stabilise.

US 30 breaks key resistance


The Dow Jones 30 soared on bets of terminal rates from the US Fed. By breaking above last month’s ceiling of 34100, the index has more than recouped the losses from the mid-October sell-off, helping the bulls regain confidence and attracting hesitant ones who have stayed on the sidelines. 34500 at the start of the September sell-off is the next target and its breach could open the door to a sustained recovery above 35000. 33800 is the immediate support in case the rally needs some breathing room

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