Intraday Market Analysis – USD Bounce Gains Momentum.
USDCAD grinds key resistance
The Canadian dollar fell after an uptick in Canada’s unemployment rate in July. The pair has found bids at 1.2430, a key support on the daily chart.
A second test of the demand-turned-supply zone around 1.2575 is a sign of growing buying interest.
An overbought RSI has recovered to the neutral zone and may give the bulls room to double down.
A break above 1.2600 would lift the greenback towards the peak at 1.2800. However, a deeper pullback below 1.2500 may extend the consolidation to around 1.2430.
XAUUSD plunges to important support
Gold tumbled as the US dollar surged on strong jobs data.
The triple top near 1830 was a sign that buyers had a hard time pushing above the major resistance.
Strong momentum below the floor at 1790 indicates that leveraged buyers have rushed to exit. This is an invalidation of a month-long rebound. 1765 is the new resistance.
The price has bounced off the critical support of 1680 from last March, while an oversold RSI recovers into the neutral area. Its breach could exacerbate the sell-off towards 1600.
NAS 100 seeks support
The Nasdaq 100 retreats as solid economic recovery favors value stocks.
Last week’s bounce off the 20-day moving average has propelled the index to an all-time high at 15185.
An overbought RSI has restrained the bullish fever. Now it has dropped down to the neutral zone, and price action is seeking support.
Buying interest could be found in the demand area between the 30-day moving average (14870) and the psychological level of 15000. A bullish breakout may stir up momentum and send the index to 15300.
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