Intraday Market Analysis – AUD Struggles to Clear Resistance.
AUDUSD returns to major support
The Australian dollar stays muted after a dovish RBA kept the official interest rate unchanged overnight.
Despite a rebound above the resistance at 0.7750 the pair is struggling to gain momentum. The supply zone around 0.7800 is a major hurdle that has foiled the Aussie’s previous attempts.
The RSI has retreated into the neutral area and may allow buyers greater leeway in making another push.
On the downside, the support (0.7680) on the daily chart is critical in keeping the price afloat in the short term.
USDCAD meets resistance
The Canadian dollar rallied on better-than-expected March GDP growth. The US dollar’s recent bounces have failed to clear the key resistance at 1.2140. An overbought RSI in that supply area was rather a signal to sell into strength.
The selling pressure intensified after the price dipped to the psychological level of 1.2000. The bearish MA cross indicates a new round of sell-off which would carry the greenback towards May 2015’s low at 1.1920. Any rebound might be capped by the resistance at 1.2090.
EURCHF gathers rebound impetus
The Swiss franc inched lower after the Q1 GDP came in worse than expected. From the daily chart’s perspective, the euro is in a flag-shaped consolidation following February’s surge. There is potential for continuation after a bullish breakout.
The pair has seen solid support above 1.0930. The current retracement has allowed the RSI to cool down. A break above 1.1020 could bring in momentum.
A combination of short-squeezing and fresh buying may extend the rally towards 1.1070.