Intraday Market Analysis – Euro Gains Momentum

August 2, 2021

EURUSD breaks resistance

The euro inched higher after the eurozone’s Q2 GDP growth topped estimates.

The pair has crossed above the 30-day moving average on the daily chart, a sign of unwavering interest from the demand zone at 1.1750. Strong momentum above 1.1880 could be a short squeeze.

With sellers out of the picture, for now, buyers will need to consolidate their gains before they could stage a reversal beyond 1.1910. An overbought RSI has led to a limited pullback as intraday bulls take profit. 1.1840 would be the immediate support.

USDCAD tumbles through support

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The Canadian dollar rallies as Canada’s GDP showed a smaller contraction in May. The US dollar’s break below 1.2430, a key support from the daily time frame, indicates that sentiment still favors its northern neighbor.

The RSI has risen back to the neutrality area, which may give the bears enough room to sell the next rebound. The support-turned-resistance at 1.2550 could be the key hurdle.

On the downside, renewed momentum below 1.2420 may push the greenback to the base of July’s rally at 1.2300.

XAGUSD attempts bullish reversal

Silver extends the rally as the US dollar weakens across the board.

An RSI divergence has previously revealed a slowdown in the bearish momentum. The price bounced sharply after the sellers’ last tentative push. The surge above 25.40 suggests broad profit-taking.

Once the dust settles and the RSI drops back from its overbought situation, buyers could be looking to initiate a reversal from the psychological level of 25.00 which sits in a former supply zone. 26.20 would be the target if they can gather enough impetus.

By Orbex