Intraday Market Analysis – EUR Awaits Momentum Catalyst.
EURUSD grinds major resistance
The euro consolidates its recent gains ahead of today’s ECB meeting. The pair has recovered from the 30-day moving average (1.2105).
Hourly MAs have shown a bullish cross through the path upward could be choppy. A break above 1.2205, the origin of the latest sell-off would strengthen the bullish bias. Lifting 1.2250 would be a step closer to the peak at 1.2350.
In the meantime, an overbought RSI has prevented traders from chasing momentum. 1.2150 is the immediate support.
USDCAD trades in a limited range
The Canadian dollar dropped after a dovish BoC gave no hint of taper. The US dollar has been treading water near a six-year bottom. The horizontal consolidation between 1.2010 and 1.2140 is a sign of the market’s indecision.
The bears may have covered some of their bets as the RSI showed a deeply oversold situation on the daily chart. Though sentiment remains bearish unless the greenback clears offers at the critical resistance at 1.2175.
1.2060 has become the immediate support as the range narrows.
WTI rally gains traction
Oil prices rose after the US secretary of state said sanctions on Tehran may not be lifted. WTI crude gained momentum after it closed above the March peak and psychological level at 68.00. Following a brief sideways action, 68.50 has established itself as key support.
A short-term pullback has allowed the RSI to become neutral again. 70.60 is the closest resistance.
The 20-hour moving average would cross above the 30-hour one when the rally picks up steam again. Then 72.40 would be the next target.
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