Intraday Market Analysis – USDCAD Struggles To Bottom Out
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USDCAD reaches a 3-year low
The US dollar remains under pressure as downbeat ADP jobs data fails to impress the market. General sentiment remains bearish as the pair grinds down along the 30-day moving average.
The price action is about to test the February 2018 low of 1.2250. The recent bounce to 1.2350 indicates that sellers may be taking some chips off the table.
A briefly overbought RSI might have prevented bidders to get into the action. One may expect traders to buy the dip when the greenback reaches the said support level.
EURGBP tests key support
The euro weakened after PMIs in Germany and France came out below consensus. The pair has struggled to clear the major supply area around 0.8720 on the daily chart.
The triple top has kept the price action in check, which suggests that profit-takings have prevailed for the lack of further commitment from the buy-side.
0.8590 is key support as a bearish breakout could make the euro vulnerable to the downside.
On the upside, 0.8688 is the immediate resistance from the latest sell-off.
USOIL rises above major resistance
WTI crude price consolidates gains as US inventories slash another 8M barrels. By clearing the resistance at 66.30, a major level from the previous sell-off the price action has signaled a bullish continuation.
March’s high at 67.90 would be a formality as the rally gains impetus. However, an overbought RSI shows signs of over-extension.
There is limited downside risk if trend followers wait for a pullback to jump onboard. 65.00 would be the first support to look for.
Further down, 62.90 is critical in keeping optimism intact.
