Forex Trading Library

Intraday Analysis – USD Begins Fightback

0 17

The EURUSD pair gives up gains
 Chart showing The EURUSD pair sharp reversal after mixed US data, focusing on triple bottom and key support levels

The EURUSD pair saw a sharp turnaround after mixed manufacturing data came out of America. The downward momentum has turned corrective after coming into the supply zone 1.0710 from the June sell-off. A fall below the recent swing high of 1.0760 shook out the remaining bulls as attention turned to a potential triple bottom. 1.0680 is the first level to crack, and its breach would foreshadow a bearish continuation below 1.0600.

USDCAD finds support
Chart depicting USDCAD's bounce from lows, highlighting critical resistance and support levels.

The Canadian dollar slipped after the greenback jumped over 100 pips from its recent low. A bounce above 1.3720 has prompted sellers to cover and eased the downward pressure. 1.3780 from the higher high is the closest resistance should momentum carry on. Then, the psychological level of 1.3900 on the 20-day SMA is a critical ceiling to lift before the greenback could initiate a broader recovery. On the downside, 1.3700 is the first support for the bulls to consolidate their gains.

US 30 stuck in consolidation
Chart illustrating Dow Jones' consolidation, with focus on Fed and NFP updates and key support/resistance points.

The Dow Jones saw two false spikes put a dent in another move to the 40,000 level. After a brief sideways pattern, traders are now looking for the following signals from the Fed and NFP this week. A bullish breakout could pave the way for an extension to another record high. 39800 is the closest support as the RSI ventures into the neutral area, and buyers could see a limited pullback as an opportunity to move in.

Test your trading strategy on forex and stocks with Orbex

 

Leave A Reply

Your email address will not be published.