USDCAD Nears Tuesday's Level, GBPCHF Doesn't Fluctate Much And USOIL With A Small Hike After A Significant Decrease

USDCAD struggles for support

Intraday Market Analysis – USD Retreats Across The Board - 1

The Canadian dollar rose after January’s CPI exceeded expectations. The recent triple top near 1.2800 at the origin of the January sell-off is a sign of strong bearish pressure.

A combination of profit-taking and new selling means that sentiment is yet to make a decisive turnaround. The bulls will need to push past this major daily resistance before the US dollar could recover to 1.2960.

Failing that, a drop below the lower band (1.2640) of the current consolidation range would bring the pair to 1.2560.

GBPCHF attempts breakout

Intraday Market Analysis – USD Retreats Across The Board - 2

The sterling finds support from upbeat readings in the UK’s CPI and retail sales.

The rally came under pressure in the supply zone around 1.2600. A retreat below 1.2500 has shaken out some weak hands but the sentiment remains upbeat. A subsequent bounce off the demand zone (1.2470) suggests solid interest in keeping the pound afloat.

A break above the said resistance would trigger momentum buying and open the door to last October’s high at 1.2760. On the downside, a deeper retracement would test the next support at 1.2380.

USOIL shows signs of overextension

Intraday Market Analysis – USD Retreats Across The Board - 3

Oil prices faltered after a surprise rise in US inventories. WTI hits resistance at September 2014’s high (95.50).

The RSI’s repeated overbought situation on the daily chart may restrain the bullish fever. A bearish RSI divergence on the hourly time frame indicates a loss of momentum in the short term. 89.10 is the closest support that sits along the 20-day moving average.

Buyers could be waiting to enter at pullbacks. A deeper retreat could trigger a sell-off towards 84.00, which is a demand zone from January’s breakout.

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.