Forex Trading Library

Intraday Analysis – The Dax Attempts Another Record

0 24

GER 40 holds on to gains
Chart showing The Dax attempt at a new record high

The Dax 40 saw another record high has the economy brushed off recession fears. Bears have had a hard time pushing beyond 17700 and the 20-day SMA. A confirmation break below the psychological level of 18000 will take out some weak hands. As the trading range narrows between these significant levels, a breakout on either side would dictate the next move. 18100 is the latest resistance, with a long term bearish divergence still in play.

USDCAD breaks through the barrier Chart displaying USDCAD's breakthrough."

The Canadian dollar fell against the greenback after mixed inflation results. With a drop of over 60 pips on the pair, the greenback is clawing back losses as another attempt at 1.3610 is on the horizon. The upward bias remains intact on the chart, with solid buying over 1.3560 at the confluence of the 20-day SMA. A close above 1.3600 would resume the uptrend above the recent high as the RSI flirts with neutral territory.

EURGBP remains choppy

Chart illustrating EURGBP's volatility.

The euro saw a slight downturn as UK inflation progressed towards 3%. A drop below the first support at 0.8550 has dented some momentum. 0.8530 is the next level to see if buyers are up against a wall if the pair revisits the critical floor at 0.8500. Its breach would lay the foundation for a bearish reversal in the near term. The RSI’s previous oversold condition attracted some bargain hunters, but a close above 0.8565 would open the door to this month’s high.

Test your forex trading strategy with Orbex

Leave A Reply

Your email address will not be published.