USD claws back losses
|EUR/USD tests support
The US dollar surged after July’s nonfarm payrolls more than doubled the market’s expectations. Multiple tests of the demand zone around 1.0100 suggests solid interest in keeping the rebound intact. 1.0290 next to the 30-day moving average is a key hurdle ahead. A bullish breakout would put the single currency back on track as short-term sellers capitulate. Then 1.0450 at the start of the July sell-off would be the next target. However, a fall below the said support could send the pair back to parity, putting the recovery at risk.
USD/CAD bounces back
The Canadian dollar softened after weaker-than-expected jobs data. The US dollar has been resilient despite its break below the daily support at 1.2480. This suggests that the pair is still in a consolidation phase. 1.2770 saw strong buying interest and a close above 1.2900 on the 30-day moving average prompted sellers to cover their bets, easing the downward pressure. A break above 1.3000 may help the bulls regain control, paving the way for a rally towards 1.3200. The former resistance at 1.2880 has become a fresh support.
DAX 40 tests rising trendline
Stock markets fall as a robust US labour market may stir up the Fed’s hawkishness. The rising trendline is a sign of improved sentiment and a close above 13650 at the tip of a faded rebound in mid-June indicates a strong bullish bias. However, the RSI’s repeated overbought situation signals an overextension and could cause a pullback. 13550 on the trendline is the first support and 13330 could test buyers’ commitment. A bounce above 13780 may attract more momentum buying, sending the Dax towards 14050.
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