U.S. Durable Goods boost Dollar today

Eliman Dambell Sayvio AI

USD/CAD

After a volatile week of trading, FX markets mainly consolidated on Friday, however USDCAD was one of the big movers during today’s session.

The release of the US Durable Goods boosted the Dollar, as orders for core goods rose by 0.4% in August, which is the fourth straight gain since the declines during the height of the COVID-19 outbreak. Although demand for goods continues to increase, figures have slowed after three consecutive months of strong gains, and markets had forecasted a 1.5% increase in August. CAD volatility continues to be tied to oil prices, which today is just below the $40 level, after threatening to break out of this threshold all week.

USD/CAD was up close to 51 pips as of writing, rising to an intraday high of 1.3413 which has been the recent resistance, as seen below on the H4 chart. The pair rallied after briefly consolidating within the support of 1.3344. Traders are now looking to see if a breakout from resistance is possible. The 10 and 25 EMAs had begun slowing prior to today’s move, will we see them change direction once again, possibly shifting upwards?

4H Chart via Tradeview Markets

EUR/USD

As COVID-19 cases in Europe continue to rise, as well as the tensions with the UK regarding a Brexit deal, traders often look towards the Euro for intraday opportunities, and today was no different.

EURUSD captured the imagination of speculators as the European Council Special Meeting concluded, whilst data released from Italy showed that both Business and Consumer Confidence was on the rise, coming in at a reading of 92.1 and 103.4 respectively. As stated earlier, USD also moved due to the release of the Durable Goods report.

As of writing, EURUSD was down close to 51 pips, falling to the day’s low of 1.1611 and continues to look for a new floor, after breaking out of its long term support level of 1.1726 on Tuesday. Looking closer to the charts will also show the 10, 25 and 50 EMAs have crossed, meaning that a potential reversal could be on the cards. Do you expect markets to consolidate next week after close to 2 weeks of bearish sentiment?

4H Chart via Tradeview Markets

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Author

Eliman Dambell

Sayvio AI

With over a decade in financial markets, Eliman brings an experienced and diversified point of view to market analysis. He covers current and historical macro trends to give insights on Metals, FX, Stocks, and Crypto.

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