Forex Trading Library

Intraday Analysis – USD pulls lower

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USDCAD tests key floor


The Canadian dollar rose after retail sales stayed in positive territory in September. The price drifted lower after hitting resistance at 1.3760 where a shooting star pattern showed a rejection of higher offers. This suggests that the path of least resistance is downward. A break below the swing low of 1.3630 from the daily chart could trigger a deeper correction if 1.3570 fails to gather the bulls’ support. 1.3690 is the immediate resistance and only a break above 1.3840 may turn short-term sentiment around.

EURGBP probes support


The pound edged higher over an upbeat UK consumer confidence index. On the daily chart, the pair is slowly reclaiming its lost ground from a sell-off in May. Choppy waters could be expected ahead as the euro came off the supply zone 0.8760-0.8780. In the near term, a slip below 0.8690 has thrown out the weak hands, sending the RSI near the oversold area, but sentiment would remain optimistic as long as the price is above this month’s low of 0.8650. 0.8725 is the latest hurdle to clear before the bulls could push back.

US 30 aims for 4-month high


The Dow Jones 30 grinds higher as both US manufacturing and services PMI remained steady in November. The index is on its way to the July peak of 35650 and the swift turnaround indicates strong interests in keeping the bullish bias intact in the medium-term. Stiff resistance could be expected in that supply area due to profit-taking and fresh selling. 35240 is the immediate support in case of a pullback and the former resistance at 34900 would be the bulls’ second layer of defence to maintain the current momentum.

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