Forex Trading Library

Intraday Analysis – USD lacks support

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USDCAD drifts lower
USDCAD-CHART-04-12-2023

The Canadian dollar rallied after strong growth in November’s employment. The pair continues to search for support after it gave up gains from its October rally. On the daily chart, the base of a previous breakout rally around 1.3400-1.3420 is a major demand zone to keep the rebound momentum intact. Its breach would trigger a deeper correction towards last summer’s trough near 1.3200. The tip of the latest faded bounce at 1.3620 is the first hurdle to clear and 1.3710 a key resistance standing before a sustained recovery.

USOIL struggles to bounce
USOIL-CHART-4-12-2023

WTI crude faltered after production cuts agreed by OPEC+ came out lower than market estimates. The recent climb hit resistance at the mid-November high of 79.50, suggesting that sentiment remains cautious with sellers looking to double down. 72.20 is an important level to maintain the latest higher lows patterns should the bulls make their way back. Otherwise, the price could tank below 70.00, invalidating the current recovery. On the upside, a break above 76.50 would ease the burden but 79.50 may still be tough to crack.

GER 40 to test all-time high
GER-40-CHART-4-12-2023

The Dax 40 advances as Fed Chair Powell’s balanced tone about interest rates fuelled appetite for equities. The index is shooting for the all-time high of 16520 as the bulls seek to trigger a continuation after three months’ of retreat. After the V-shaped bounce drove the daily RSI into the overbought area, a pullback might be due to give the rally a breathing room. 16200 is a fresh support and the resistance-turned-support and the psychological level of 16000 may see short-term trend followers eager to buy at discounts.

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