US 30 stays pressured
The US 30 (Dow) continued to underperform as it registered another drop in the past week. The index is hovering above 42000 as price action attempts to stay afloat. This is a necessary support to keep the bids afloat as a bearish breakout would force buyers to close positions and trigger a deeper correction to 41500, putting this year’s rally at risk. A close above 42600 will flush out some sellers and help the bulls regain confidence.
EURUSD finds support
The Euro found some support to halt the continued slide that it has seen since the beginning of the month. As we close out October, the pair has seen some relief after finding support at the 1.0760 area. A bullish divergence on the RSI indicates a slowdown in the sell-off momentum. 1.0850 has now become a key resistance, and its breach would prompt sellers to take some heat off the Euro. The latest drop towards 1.0750 is a fresh support to maintain the recovery bias.
USDCAD keeps climbing
The Canadian dollar, on the other hand, still lost momentum against the greenback as the upside rally continued. This has brought the greenback close to the yearly high at 1.3945, where a breakout could see a further push towards 1.4000 and a two-year peak. In the meantime, a pullback towards 1.3850 could give the pair a breather, and the former support zone around 1.3800 is the first support to expect follow-through bids.
