By Orbex
USDCAD consolidates at 4-month low
The US dollar retreats ahead of this week’s FOMC as traders await further catalysts. Price action has stabilized above 1.2300, a major demand zone from last summer.
1.2430 from the latest sell-off is a key resistance as it coincides with the 20-day moving average. The current consolidation suggests the market’s indecision, though overall sentiment remains bearish.
A deeper correction would send the greenback to 1.2150. A bullish breakout on the other hand may challenge the supply area around 1.2550.
EURJPY tests key support
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The euro struggles to bounce higher after Germany’s lackluster retail sales in September.
The pair has come under pressure at 133.45 near June’s peak. The subsequent retracement has met some bids at 131.60 when the RSI dipped into the oversold territory.
The triple test of the support level indicates solid buying interest. However, the bulls will need to push above 132.80 before the uptrend could resume.
On the downside, a bearish breakout would extend the sideways action towards 130.80 which sits on the 30-day moving average.
US 100 falls back for support
The Nasdaq 100 surges to a new all-time high as investors expect the strong growth trend to continue. The break above the previous peak at 15700 has put the index back on an upward trajectory.
A bullish MA cross on the daily chart is a confirmation of the market’s optimism. However, a brief pullback is necessary to let the bulls catch their breath.
15620 is the immediate support. Further down, 15280 is key daily support on the 20-day moving average. The psychological level of 16000 would be the next target rebound.
Article by Orbex
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