Forex Trading Library

Intraday Analysis – Dow 30 Clawing Back Losses

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Dow 30 resumes uptrend
US 30 Chart: Dow 30 maintains bullish trend, eyes sustained recovery above 38300

The Dow 30 remains bullish, with corporate earnings exceeding expectations. The index has found solid buying interest over the 20-day SMA at 38000. A quick bounce above 38300 has forced short-term sellers to cover. A close above the recent top would clear the path for a sustained recovery towards 39000, with the possibility of further extension soon. The RSI’s recent top in the overbought zone could cause a limited retreat.

USDCAD stops the freefall
USDCAD Chart: Canadian dollar finds support after retail sales data, hovers near 1.3650

The Canadian dollar found some support as retail sales data almost moved out of negative territory. A solid break above 137.00 briefly injected some signs of life into bulls before a move lower with support hitting the 1.3650 area. 136.20 at the previous bounce is a significant floor, and its breach would take out the remaining bulls and signal a bearish continuation in the near term. An oversold RSI could briefly temper the downward movement and let bears catch their breath. 137.30 would be fresh resistance in this case.

EURGBP breaks lower
EURGBP Chart: Euro drops against the pound, breaking below key level at 0.8600

The pound continues its recovery over the euro after the pair dropped almost 100 pips. After hitting this year’s high, a heavy rejection at 0.8650 caused a broad sell-off. The confirmation came in as the pair broke the phycological 0.8600 level, denting the upward bias in the short-term and exposing the mid-0.85 area. With the RSI heading to the oversold area, 0.8530 is the first support in case of a freefall.

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