Forex Trading Library

Intraday Analysis – USD Dominates Rivals

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Dow Jones 30 hits critical floor
The Dow Jones 30 chart: US 30 downtrend below 38000, support at 37000, 36500, with potential upside to 39000.

The Dow Jones 30 (US 30 ) tumbled another 100 points as prices break yet another critical support. A bearish MA deterred sentiment after the index fell from the 38000 level. Bears have flushed out the remaining buying interests as price action aims for the mid-37000 area. A lower break would clear the path for an extension towards 36500, the base from the previous bounce higher. On the upside, 39000 has become a firm target in case of a pullback.

USDCAD breaks resistance
USDCAD chart: "USDCAD breakout above 1.3800 with resistance at 1.3870, support at 1.3720, and 1.3650.

The Canadian dollar retreated further as the greenback continued the dominance over its neighbour. The pair broke the psychological 1.3800 level for the first time since November. The former support at 1.3720 is the first hurdle to reach to ease the upward pressure. Bears must clear 1.3650 near the 20-day SMA before hoping for a turnaround in fortunes for the loonie. Otherwise, a break above the critical level of 1.3870 would force sellers to bail out and continue the uptrend.

EURGBP remains choppy
EURGBP chart: "EURGBP consolidating around 0.8550, support at 0.8510, 0.8460, and resistance at 0.8600.

The euro found a recent double bottom, which paused the collapse of the pair. On the chart, prices are now consolidating, showing strong enough interest in keeping the bulls intact in the medium term. However, intraday actions could see some choppy waters after the bulls hit a wall at 0.8550. 0.8510 is the first support, with 0.8460 at the base of the current bounce as a second line of defence. A close above 0.8600 could attract momentum buyers at the last swing high and send the pair to January’s high of 0.8700.

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