Forex Trading Library

Intraday Analysis – CAD Choppy Recovery

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USDCAD gives up gains
USDCAD chart showing recovery and RSI levels

The Canadian dollar recouped losses after hitting a firm double top. The pair recovered to the downside on the chart as the 1.3400 level was tested. A break above the previous resistance of 1.3460 could ease some pressure, but ideally, the supply zone needs to be cleared between 1.3490 and 1.3520 to turn things around. A break below 1.3380 could continue the bear rally, with January’s swing low at 1.3320 a critical support as the RSI drops into oversold territory.

NZDUSD another consolidation
NZDUSD chart depicting consolidation phase with support and resistance levels indicated

The New Zealand dollar entered another consolidation zone as prices began to fight back. The pair has been grinding the recent level of 0.6100 without success, and a break below 0.6070 could prompt bulls to look for the exit. As Kiwi strives to maintain momentum, 0.6140 over the 20-day moving average is key for expecting follow-up interest. The support-turned-resistance at 0.6180 is the first barrier to lift before the uptrend could resume. Otherwise, the gate would be open for a drop below 0.6000.

UK 100 bearish divergence underway
FTSE 100 chart indicating bearish divergence and RSI patterns

The FTSE 100 treads water ahead of major central bank decisions. The RSI’s double top in the overbought zone is a sign of overextension and now creates a bearish divergence, which could pull prices lower. As the index headed into recovery from December’s swing high, the 7700 area looks like the first resistance hurdle if prices look to recover to 7760, 7640 is the key support in case of a deep correction, which could see a turnaround in fortunes and bring price action towards 7600 in the near term.

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