AUD/CAD shows signs of a bullish reversal

JFD Team JFD

AUD/CAD traded higher during the European morning Monday, breaking above the resistance (now turned into support) barrier of 0.9533. The move appears to have signaled the completion of a double bottom formation on the 4-hour chart, and thus, we will start examining the case of a bullish reversal.

If the bulls are willing to stay in the driver’s seat, we may see them targeting the 0.9575 hurdle soon, the break of which may extend the recovery towards the 0.9615 zone, marked near the inside swing low of April 22^nd. If that area is not able to halt the advance either, then we may see the buyers aiming for the 0.9654 level, marked by the inside swing lows of April 15^th and 19^th.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 50 line and points up again, while the MACD lies above both its zero and trigger lines, pointing up as well. Both indicators detect rising upside speed and support the case for this exchange rate to continue drifting north for a while more.

On the downside, in order to consider the resumption of the prior downtrend, we would like to see a dip below the key support area of 0.9450, which prevented the rate from falling further from April 30^th until May 7^th. Such a dip would confirm a forthcoming lower low on the daily chart and could pave the way towards the 0.94000 zone. Another break, below 0.9400, could see scope for declines towards the 0.9355 obstacle, defined as a support by the low of November 4^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.