Intraday Analysis – USD keeps its edge

<div><img width="750" height="430" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081454/Intraday-16-1.png" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081454/Intraday-16-1.png 750w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081454/Intraday-16-1-300×172.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></div><h2>EURUSD tests critical support</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-206417 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5.png" alt="Chart of EURUSD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081159/EURUSD-5-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The US dollar advanced after an acceleration in July’s retail sales figures. The pair is seeking support over the daily demand zone near <strong>1.0870</strong> at the base of the July breakout rally. This is an important level to keep the euro’s trajectory up in the medium-term as a bearish breakout could trigger a liquidation of a crowded long trade. Offers around the psychological level of <strong>1.1000</strong> are the first to go to ease the downward pressure then the bulls will need to clear 1.1150 before a solid recovery could materialise.</p>
<h2>USDCAD continues higher</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-206418 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2.png" alt="Chart of USDCAD" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081303/USDCAD-2-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The Canadian dollar found limited support as July’s CPI remained stubbornly high. The US counterpart’s brief pullback has found bids at 1.3370 which used to be a former swing high in early July. A series of higher lows indicates a mounting buying pressure as sellers seem to be out of sight. A close above the latest peak of 1.3500 may attract momentum buyers and extend the rally to <strong>1.3550</strong>, which would be a step towards the daily double top of 1.3650. On the downside, <strong>1.3440</strong> is the first support in case of a retracement.</p>
<h2>UK 100 to test double bottom</h2>
<p><a href="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-206419 size-full" src="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2.png" alt="Chart of UK100" width="1200" height="627" srcset="https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2.png 1200w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2-300×157.png 300w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2-1024×535.png 1024w, https://assets.iorbex.com/blog/wp-content/uploads/2023/08/16081425/UK100-2-768×401.png 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></p>
<p>The FTSE 100 tumbled as surging wages in the UK might foreshadow aggressive rate hikes. A plunge below the previous swing low of 7450 is a sign of capitulation of short-term long positions, invalidating the bounce in late July. The demand zone around 7230-<strong>7290</strong> formed by a double bottom on the daily chart is the next level to hope for stabilisation. This is critical in keeping the index afloat and its breach could trigger a broader correction to 7000 or below. <strong>7450 </strong>has turned into a fresh resistance in case of rebound.</p>
<p>The post <a rel="nofollow" href="https://www.orbex.com/blog/en/2023/08/intraday-analysis-usd-keeps-its-edge">Intraday Analysis – USD keeps its edge</a> appeared first on <a rel="nofollow" href="https://www.orbex.com/blog/en">Orbex Forex Trading Blog</a>.</p>