Forex Trading Library

Intraday Analysis 10.07.2024

USD Struggles to Break Down the Euro

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EURUSD covers the weekend gap
EURUSD Chart: The Euro covering the weekend gap with support and resistance levels after recent Euro elections.

The Euro managed to get back on track after the recent French Elections saw a drop in price action. The pair previously found support at 1.0800 at the base of a bullish momentum, which coincided with the 20-day SMA. The directional bias has remained upward from the chart’s perspective, with an overbought RSI threatening a bearish divergence. A pop above 1.0850 could put the Euro back on track and move to test the recent peak of 1.0900. 1.0780 is a fresh support in case the bulls need to catch their breath.

GBPCAD on the road to recovery
GBPCAD Chart: GBP/CAD showing recovery attempts with key support and resistance levels.

The Canadian dollar attempted to crash the sterling recovery as price action dropped from the 1.7500 area. A close above 1.7450 attracted some momentum buyers, but it wasn’t enough to send the pair towards June’s peak of 1.7600. 1.7470 is the intermediate hurdle, and the RSI’s overbought condition could prompt bulls to take some profit. 1.7350 is the first level to expect renewed selling interest, and 1.7260 on the 20-day SMA would be the bulls’ second line of defence.

GER 40 eyes liquidation
GER 40 Chart: GER 40 facing bearish pressure with support and resistance levels amid recent Euro elections.

The Dax 40 failed to lift above the recent peaks as Euro elections threatened to derail momentum. A sharp fall below 18500 from a previous lengthy consolidation is a sign of selling pressure by short-term bulls. The RSI has fallen into neutral territory as sellers take profit, but the index is yet to stabilise as traders are wary of a further sell-off. A break at 18650 is needed for bulls to take over otherwise, a move below 18400 opens the door to 18000 at the start of a breakout rally.

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