Intraday Market Analysis – USD Gains Momentum

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USDCAD breaks higher

USDCAD

The U.S. dollar is rebounding as traders pile up in safer currencies at the expense of commodity assets.

The previous build-up above the supply zone at 1.2800 prompted sellers to cover. Then a subsequent pullback saw support above 1.2600, a sign of accumulation and a strong interest from traders to keep the green house afloat.

A break above 1.2810 could pave the way for an extended rise to last December’s high at 1.2950although the situation of the RSI may briefly hold back the bulls. 1.2680 there is fresh support in case of withdrawal.

EURGBP stands out

EURGBP

The euro is recovering from losses as it was short-lived before the ECB meeting. The fall of the pair below the main floor (0.8280) on the daily chart further weighs on sentiment.

The lack of support suggests that traders are wary of catching a falling knife. The double dip of the RSI in the bestselling area caused a profit, driving the price up.

However, the rally could turn out to be a dead cat bounce if the bears wither the bounce in the supply zone around. 0.8360. 0.8200 there is fresh support when momentum returns again.

SPX 500 is struggling to bounce back

SPX 500

The S&P 500 has extended losses as investors are wary of a global economic downturn.

On the daily chart, a short rebound hit a stiff selling pressure above the 30-day moving average (4410). In fact, this indicates that the bearish mood is still prevailing after the index fell through 4250. Buyers failed to hold above 4230, leaving the market vulnerable to another round of selling.

4110 is the next stop and a bearish break could lead to the psychological level of 4000. 4320 is now the closest resistance forward.

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