Forex Trading Library

Intraday Analysis – USD Hits Another High

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USDCAD regains focus
USDCAD chart: Pullback observed after triple top near 1.3600, with focus on 1.3570 resistance, influenced by recent PMI data.

The Canadian dollar witnessed a pullback after an uptick in manufacturing PMI data. The pair fell lower on the chart after hitting a triple top, just above 1.3600. After sinking to the 1.3500 area, prices are now looking for another test higher, with 1.3570 being the first obstacle. A decisive breakout would shake out some sellers and give the buy side a chance to push above November’s highs of 1.3800. Otherwise, a fall below 1.3480 will cause a bearish reversal in the near term.

USDCHF breaks psychological level
USDCHF: Chart displaying a bullish MA cross and breakout above the 0.9060 resistance level, with attention on the 0.9110 target.

The US dollar bounced off the 0.9000 handle as retail sales data fell into negative territory for the Suisse economy. A bullish MA cross and a move above the resistance of 0.9060 suggest an acceleration to the upside. Aiming for a 6-month high at 0.9110 first needs confirmation at 0.9060, as the RSI produces a bearish divergence. If 0.9000 can be held as a firm support, the bullish rally could continue; otherwise, a sell off could wipe off the 200 pips gained on the currency pair.

 

EURJPY hitting dead cat bounce
EURJPY: Price chart indicating a potential bearish extension below 163.50, with emphasis on the 163.30 resistance level for a bullish reversal.

The euro hit another low as it failed to move above 165.00. A tentative break below 163.50 is the first step towards a bearish extension in the medium term. The Yen is looking to hold on to its gains as a dead cat bounce formation threatens to pull prices lower towards 160.50. As the RSI falls lower, a close below 162.00 would attract momentum selling and resume the rally. 163.30 would be the bulls’ first target for a brief turnaround.

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