24 Jun

Intraday Market Analysis – USD Retraces After Overextension

June 24, 2021

By Orbex

USDCAD retreats for support

USDCAD

The Canadian dollar strengthened after retail sales.

The pair had exhibited a bearish RSI divergence, a sign of overextension after the greenback’s breakneck surge. The break below 1.2350 shows a lack of further commitment from buyers and confirms the bearish MA cross.

The RSI is bouncing back from an oversold situation. 1.2260 might be a temporary support. Then 1.2155 is a major level to keep the rebound relevant.

On the upside, the rally may only resume if the bulls succeed in pushing back above 1.2400.

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NZDUSD rebounds after bullish MA cross

NZDUSD

The US dollar licks wounds after the Fed warned that the recovery will need more time before tapering.

The kiwi’s drop below 0.6950, a critical support from the daily timeframe, is a sign of prolonged consolidation in the coming weeks. An oversold daily RSI points to a rebound in the short term.

The pair has bounced above the psychological level of 0.7000. This comes as a confirmation of the RSI’s divergence and the bullish MA cross. 0.7100 is the next target. 0.6960 is the immediate support in case of a pullback.

USOIL rallies along rising trendline

USOIL

Oil rises as falling EIA crude stockpiles point to tighter supply.

After a brief consolidation, the break above 73.00 suggests that the bulls are still in control of price action. Sentiment remains bullish as long as the price stays above the rising trendline. 75.00 would be the next target as momentum traders push up volatility.

The RSI has retreated into the neutral zone. Between 71.10 and 72.00 lies a key demand zone where trend followers are likely to leave a bid.

By Orbex


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