Intraday Market Analysis – USD Grinds Higher

July 8, 2021

USDCAD rallies above recent peak

The US dollar keeps the high ground after the FOMC minutes delivered no surprises. The greenback saw a strong bid around the important support at 1.2300.

The RSI divergence suggests that the selling pressure has waned in this demand area. The latest bounce above the previous high at 1.2470 is the confirmation the bulls were looking for.

The pair may resume its uptrend and 1.2600 would be the next target. A temporary pullback driven by an overbought RSI may seek support around 1.2400.

XAUUSD meets key resistance

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Gold continues to recover as US Treasury yields soften.

The non-yielding metal has slowly cleared the resistance at 1795, which had the benefit of attracting trend followers in joining the rebound.

The former supply area around 1790 has turned into a demand area. The RSI has returned to neutral territory. 1824 is a major hurdle ahead. A bullish breakout could raise volatility and confirm the reversal.

However, a fall below 1790 would dent intraday optimism and trigger a sell-off to retest 1760.

USOIL sinks towards daily support

Oil plunges as the OPEC+ deadlock over supply, fuels concerns for a price war.

The RSI divergence already indicated a loss in the upward momentum.

Price’s successive drop below 75.00, then 73.60, is the confirmation of a correction. Strong momentum suggests that buyers are forced to run for cover.

The bears are pushing for the psychological level of 70.00. Below that, the rising trendline (68.40) from April 2020 would be critical support. 75.30 is now the resistance in case of a rebound.

By Orbex