Intraday Analysis – CAD Relieves Some Pressure

USDCAD breaks key support

The CAD/USD gained momentum over its neighbour after inflation data remained steady. The pair has bounced back to 1.3750 next to the 20-day SMA. This tentative breakout has prompted more buyers to cover their positions and could pave the way for a potential extension towards 1.3550. The RSI’s double top could fuel the bearish drive, with 1.3700 being the first level to expect a follow-through. Meanwhile, 1.3620 is a second line of defence in case of a deeper pullback.

USDJPY starting to correct

The Japanese yen edged higher as the balance of trade figures remained in positive territory. Prices have seen stiff buying at the start of March at 147.00, which saw over 500 pips added to the USDJPY pair. A fall below the immediate support at 153.70 might give short-term bulls a signal to realise their profits, driving the quote lower. 152.50 is a daily support which coincides with the base of the recent bullish momentum, making it a critical floor.

GER 40 stops the freefall

The Dax 40 found some consolidation after an 8% rise in Adidas’s shares. This helped to stop the index’s freefall since the start of the month. A close above 17900 would shift sentiment and expose the psychological level of 18000. As the RSI begins a bullish divergence, traders will be eager to see prices lift. On the downside, 17600 at the confluence of a previous swing low and the 20-day SMA is a significant level to test the resolve.

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