07 Apr

Intraday Market Analysis – USD Gains Support

April 7, 2022

By Orbex

USDCAD attempts to rebound

USDCAD

The US dollar rallied after FOMC minutes showed the central bank’s plan to reduce its balance sheet. The pair found support at 1.2400 after the RSI went deeply into the oversold territory.

A break above 1.2500 prompted sellers to cover their latest bets, easing the downward pressure in the process. The bulls need to clear offers near 1.2590 before they could push for a sustainable bounce.

Failing that, further weakness could drive price action to October’s lows around 1.2300.

NZDUSD breaks support

NZDUSD

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The New Zealand dollar softened against its US counterpart after hawkish Fed minutes. The rally came to a halt in the supply zone around 0.7050 from last November’s sell-off.

0.6900 was important support and its breach forced short-term buyers to bail out. As the kiwi grinds 0.6875 over the 30-day moving average, an oversold RSI may cause a rebound.

A deeper correction may send the pair to 0.6800 and cause a bearish reversal. The bulls need to reclaim 0.6940 to regain the upper hand.

XAGUSD tests major support

XAGUSD

Silver struggles as the greenback recovers across the board. A bearish MA cross on the daily chart suggests a deterioration in the market mood.

Buyers’ struggle to lift offers at the psychological level of 25.00 indicates prevailing strong selling pressure. Sentiment has become cautious as the precious metal revisits 24.00.

Price action could be vulnerable to another round of sell-off if the bears succeed in pushing below this critical floor. Following that, 23.30 would be the next target.

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