EURGBP (The Pound sterling/ Euro) edges lower
The Pound sterling clawed back some losses as prices moved away from the recent peak at 0.8370. A surge below 0.8300 indicated that sellers had made their way back. As the buy side is forced to trim their positions, the path is clear for a bearish rally towards last month’s low of 0.825. In the meantime, the RSI’s oversold condition could temporarily limit the downside, and 0.8315 would be the first level at which to gauge the strength of follow-up buying.
USDCAD looking for another bull run
The Canadian dollar pulled back against its neighbour with a 50-pip jump. The pair is capitalising on its rebound from the latest bounce at 1.3980, as overall sentiment has remained positive. The psychological level of 1.4000 could be the bears’ last stronghold, and its breach would stir up volatility and signal a bullish continuation above 1.4150 in the days to come. On the downside, the latest swing low of 1.3940 makes it an area of interest in case of a pullback.
US 30 looks for another record
The Dow is stuck in consolidation as it nears another record high. A break above 44400 prompted short-term bears to exit, helping the market mood stabilise after the recent correction. The RSI’s bearish divergence showed a deceleration in the rebound but was not enough to deter the bullish trend. A brief retreat could be an opportunity for buyers to accumulate and push prices above 45000. 44600 is critical support should prices fall back.
