Forex Trading Library

Intraday Analysis – The Dollar Awaits Fed’s Signal

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EURUSD hitting resistance

EURUSD chart: Showing price hitting resistance, with key levels marked.

The US dollar gained over 80 pips as traders prepared for a dovish Fed testimony. A drop below 1.0930 shows strong bearish intent that the greenback is recovering. As the RSI dropped into oversold territory, a bullish divergence threatened to end the bear run. A close below the February low of 1.0700 would reinforce the downward bias and open the door to extending the supply zone to around 1.6500.

USDCAD bounces backUSDCAD chart: Illustrating a bounce-back scenario, with resistance and support levels highlighted.

The Canadian dollar slipped as robust US data continues to lift the greenback. Overall, sentiment remains upbeat from the daily chart’s perspective. A break above 1.3500 over the 20-day SMA has again caught buyers’ eyes. A successful rebound would keep the greenback on the front foot. 1.3560, right under the recent peak of 1.3600, is a crucial hurdle and its breach would extend gains towards 1.4000.

UK 100 jumps out of bullish channel
UK 100 chart: Shows breakout from bullish channel, highlighting resistance and support zones in The Equities market.

The Equities have recovered in Europe as investors reposition ahead of the Fed decision. A surge above last week’s high of 7700 has alleviated the pressure on the FTSE 100, but the sell side is not safe yet. 7780 is a key resistance where new sellers could drive the bids lower. 7720 is fresh support in case of further hesitation, and a break back into the channel can see bids fall towards 7580.

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