Intraday Market Analysis – USD Shows Weakness

Intraday Market Analysis – USD Shows Weakness

USDCHF struggles to bounce

Intraday Market Analysis – USD Shows Weakness - 1

The US dollar softened after November’s nonfarm payrolls missed the mark.

The pair has met stiff selling pressure at 0.9270, a former support that had turned into a resistance. The bullish RSI divergence suggests a slowdown in the sell-off though there is no confirmation yet for a sustainable bounce.

0.9120 is a key demand area on the daily timeframe and a bearish breakout would invalidate the November rebound. Buyers may switch sides as sentiment further deteriorates, exacerbating volatility to the downside.

CADJPY breaks higher

Intraday Market Analysis – USD Shows Weakness - 2

The Canadian dollar surged after November’s unemployment rate fell to 6%. A bearish MA cross on the daily chart still indicates a pessimistic mood.

An oversold RSI on the hourly chart caused a limited bounce as short-term traders took profit. Sellers are eager to fade rebounds with the latest being at 89.2087.20 at the base of the October rally would be the next support.

A deeper correction may send the loonie to 85.90. The bulls will need to lift said resistance before they could initiate a reversal.

UK 100 attempts to rebound

Intraday Market Analysis – USD Shows Weakness - 3

The FTSE 100 recouped some losses bolstered by a weaker US jobs report. The index saw buying interest over the psychological level of 7000 which sits in the daily demand zone.

The RSI’s double-dip in the oversold area has attracted a ‘buying-the-dips’ crowd in this congestion area. A close above the immediate resistance at 7150 is an encouraging sign of a bullish attempt.

7310 is a major hurdle ahead, its breach could short circuit the correction. 7060 is the closest support in case of weakness in the rebound.

John Benjamin

John Benjamin

John Benjamin is a Macro-Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.