Forex Trading Library

Intraday Analysis – USDCAD CPI Breaks Upper Channel

Daily analysis 14.02.2024 : USDCAD , EURGBP , GER 40

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USDCAD CPI breaks upper channel
USDCAD chart showing CPI break above upper channel

The Canadian dollar retreated against the greenback as CPI data pushed prices higher. The recent consolidation before the news release moved slightly lower as a false spike bounced off the 1.3400 level. This suggests that another test could be on the radar, and a potential break could move prices to the lower channel at 1.3350. Looking at the bigger picture, 1.3330 becomes the new support as bulls look for a move back towards 1.3600.

EURGBP breaks support
EURGBP chart showing the break below support level at 0.8520 and testing the 20-day SMA resistance at 0.8545

The euro slipped against the pound as employment data in the UK exceeded expectations. The euro is under pressure after a break below the previous support at 0.8520. The previous high of 0.8545 is the new resistance and coincides with the 20-day SMA on the daily chart. The RSI’s venture into the oversold area has attracted some interest, but bulls must reclaim 0.8600 before hoping for a turnaround. A retest of the daily low and critical level at 0.8500 would threaten the downtrend in the near term.

GER 40 continues to climb
GER 40 chart showing a bullish trend with a test at 17000 on the horizon

The Dax 40 remains bullish since bouncing off the 16350 area last month. With a test at 17000 on the horizon, bears have been prompted to scramble for the exit. However, a drop below the current support at 16800 would confirm the lack of follow-up bids and potentially trigger a broader downside. This could open the door for a sell-off in the medium term. The level of 17060 looks like the top of a consolidation channel that saw a recent rejection, so a break here leads to fresh highs above 17100.

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