Forex Trading Library

Intraday Analysis – CAD looks for recovery

0 30

USDCAD ignoring bearish divergence

The Canadian dollar continues to lose ground to a resurgent greenback. The pair has moved over 200 pips since the start of the year. A break at the 1.34 level led to another rally, with 1.35 becoming support. A close above the immediate hurdle at 1.3540 would attract more intraday interests and carry the price towards the previous double top at 1.36. Stiff selling could be expected from there as a bearish divergence could come into play.

NZDUSD looks for support

The Kiwi consolidated before a break below 0.62 confirmed a bearish rally. The sell off revealed a lack of momentum as the price inches towards the supply zone around 0.61. Its breach could pave the way for a bearish continuation below 0.6065. Otherwise, bulls could take over in the near term. 0.6130 is an area of congestion and its break would shake some sellers out. In addition, the recent bullish divergence on the RSI could increase prices with 0.6145 being the first target.

UK 100 bears move in

The FTSE 100 plunged lower as an uptick in inflation saw a sell off on the index. The index has collapsed on the chart after breaking the previous support at 7600. A slight bounce in price action could ensue with the RSI in oversold territory. 7430 is the first support to see whether bulls can sustain their bids at these fresh levels and push to 7490. A continuation lower could trigger broader profit-taking and possibly mean a decline towards 7350.

Test your forex trading strategy with Orbex

Leave A Reply

Your email address will not be published.