USDCAD tries to stabilise

The Canadian dollar gave back gains after a modest increase in retail sales in August. The latest rebound came to a halt in the supply zone 1.3520 from a previous bearish breakout. A close back above this level would help the bulls regain control and send the pair above 1.3600. In the meantime, short-term sentiment remains cautious after a loss of momentum, which could attract more sellers especially if weak buyers throw in the towel. 1.3370 is a key support to keep the greenback from losing more ground.

EURGBP grinds major resistance

The pound heads lower as retail sales and services PMI data fell short of expectations. On the daily chart, the euro’s break above the August peak of 0.8670 and a bullish MA cross indicates a strong comeback after a 5-month long correction. Offers around July’s high of 0.8700 are the last significant hurdle and a bullish breakout would pave the way for a sustained recovery above 0.8730. On the downside, 0.8660 and 0.8630 are two layers of fresh support in case of a pullback as the RSI shows a repeatedly overbought condition.

US 30 sinks towards 10-week low

The Dow Jones tumbles as investors digest the reality that restrictive rates are here to stay. A fall below August’s bottom of 34050 has invalidated the M-shaped rebound on the daily chart, putting those who bought the recent dips under pressure. A new round of selling might be sending the index to the double bottom at 33700 from last summer, which is a critical floor to maintain the upward trajectory in the medium-term. The support-turned-resistance of 34150 is the first obstacle to clear to turn things around.

The post Intraday Analysis – USD may stay robust appeared first on Orbex Forex Trading Blog.