USD holds steady

Jing Ren Orbex

USD/CAD tests major ceiling

The US dollar remains firm as traders expect resilient data later this week. On the daily chart, the price is probing last May’s double top near 1.3650, a major ceiling that so far has capped the greenback’s advance. Its breach would signal that the bulls are back in the game and stronger than ever, with October 2022’s peak of 1.3900 as a potential target later on. As the daily RSI shows an overextension, a pullback would be a test of the bulls’ resolve with 1.3570 as the first support and 1.3500 on the 20-day SMA as a second layer.

AUD/USD seeks to bottom out

The Australian dollar clawed back some losses after July’s retail sales exceeded expectations. The pair is looking to stabilise around its 9-month lows near 0.6370 with a preliminary bounce above 0.6480 pushing a few short interests out of the way. The former demand zone 0.6490-0.6500 from May’s low coincides with the 20-day SMA and is a major resistance to lift to instil confidence and open the door to a broader rebound to 0te.6610. On the flip side, a slip below 0.6370 would trigger a new round of sell-off towards 0.6200.

UK 100 probes resistance

The FTSE 100 recoups some losses as commodity prices register some upticks. The index so far has found support in the demand zone near the July low of 7240, offering the bulls some relief. Still, they are not out of the woods yet as the latest bounce could be due to short-term sellers’ profit-taking with support of a little bargain hunting. The demand-turned-supply zone of 7420 next to the 20-day SMA would be their first real test and a bullish breakout may extend gains to 7550. But a fall below 7300 may cause a reversal to 7000.

Author

Jing Ren

Orbex

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.

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