By Orbex
USDCAD falls through critical floor
The US dollar tumbled after weaker-than-expected nonfarm payrolls in September.
The pair has struggled to bounce back over the past few weeks. The break below 1.2500, a major demand zone on the daily chart, is the straw that broke the camel’s back. 1.2430 is the next support. And its breach could trigger an extended sell-off towards July’s low at 1.2300.
As buyers bail out, high volatility has pushed the RSI into the oversold territory. A bounce is likely to be capped by 1.2600, and it could be an opportunity to sell into strength.
XAUUSD attempts bullish reversal
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Gold surges as a slowdown in the US job market weighs on the US dollar.
A bullish candle above the first resistance on the daily chart (1775) has forced the bears to cover their positions, exacerbating the momentum in the process. Now that the selling pressure is out of the way, the bulls may consolidate their gains and build strength for a reversal.
The psychological level of 1800 would be the next target. However, an overbought RSI has caused a temporary pullback towards the demand area between 1740 and 1755.
GER 40 bounces off major support
The Dax 40 rallies as risk sentiment returns.
The index has bounced off last May’s lows around 14820. A depressed RSI in this major demand area has attracted solid buying interest. A close above 15200 may have prompted short-term sellers to cover.
The bulls will have the challenging task of clearing several resistance levels, the first being 15470 on the 30-day moving average. A pullback may test the psychological level of 15000. Further down, 14820 is a critical floor to keep the uptrend intact in the medium term.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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