US 30 breaks critical resistance
The Dow soared to another peak, achieving record highs as the US economy remained hopeful of a soft landing. By breaking above last month’s ceiling of 44000, the index has more than recouped the losses from the mid-November sell-off, helping the bulls regain confidence and attracting hesitant ones who have stayed on the sidelines. The recent Dow record highs suggest growing investor optimism, with 45000 as the next target, and its breach could open the door to a sustained rally. 44600 is the immediate support in case the rally needs some breathing room.
USDCHF sinks lower
The US dollar fell lower after failing to cover the recent weekend gap. A drop below the closest support of 0.8850 led to a liquidation of intraday long bets. 0.8800 is the next threshold to see whether buyers will enter the market. Sentiment would remain upbeat as long as the dollar moves back above 0.8950, a significant resistance on the daily chart. With the RSI heading towards the oversold area, bargain hunting could be expected, and 0.8900 is the first resistance level to clear and ease the pressure.
USDCAD to test critical support
The Canadian dollar attempts a full retracement from the recent swing, which saw a bullish 100-pip move. A dive below 1.4100 is a sign of recovery after Fed policymakers stated that they intend to continue cutting rates steadily. Further down, 1.3930 on the daily chart is a critical floor to prevent a deeper correction to 1.3800. On the upside, the bulls will need to reclaim 1.4100 from the previous demand zone to help the greenback stabilise.