Intraday Market Analysis – CAD still under pressure

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Intraday Market Analysis - CAD still under pressure

USDCAD tests key resistance

The Canadian dollar struggles over plunging oil prices amid demand concerns. On the daily chart, the outlook remains positive and crossing moving averages may suggest a potential acceleration to the upside. The pair hit resistance at the former support at 1.3700 and led some intraday traders to take profit. A bullish breakout would extend gains to November's high of 1.3800, which could foreshadow a recovery to the previous peak of 1.3970. 1.3560 is the first support in case of prolonged hesitation.

EURGBP struggles for support

The pound strengthened after the UK's GDP beat expectations in October. The pair has failed to build a support base after it dropped below the major bottom (0.8570) that has been valid since last September. The RSI's oversold condition led to a limited bounce but might not be enough to save the day as more traders may have switched to the short side. Only a close above 0.8640 would keep the euro bulls in play. Otherwise, a fall below 0.8560 would attract momentum sellers and send the exchange rate to 0.8500.

SPX 500 grinds key support

The S&P 500 consolidates as investors await US inflation data later today. After turning south at 4100 near September's high, the index has struggled to find follow-up bids. A fall through the base of the previous bullish momentum prompted buyers to exit and reassess the mixed mood. The latest rebound to the psychological level of 4000 is an important test and a breakout would open the path to the recent peak at 4100. 3910 is a key level to keep the index afloat as its breach could trigger a liquidation towards 3820.

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