Intraday Analysis – USD Pressured by the Fed
![Intraday Analysis – USD Pressured by the Fed](https://assets.iorbex.com/blog/wp-content/uploads/2024/05/02092441/Intraday-2024-05-02T102433.695.png)
USDCAD breaks support
![USDCAD Chart: Support broken following the Fed’s decision, potential for extended sell-off towards 1.3600.](https://assets.iorbex.com/blog/wp-content/uploads/2024/05/02092152/USDCAD-chart-02.05.2024.png)
The Fed’s decision to stick with its ongoing plan relieved the Canadian dollar. The pair has met some selling pressure in the supply zone at 1.3800. A tentative break below 1.3730 next to the daily SMA would dent the short-term optimism and trigger an extended sell-off with 1.3600 as a potential target. On the upside, 1.3780 is an intermediate resistance, and only a close above 1.3800 would resume the recovery.
USDCHF begins the turnaround
![USDCHF Chart: USD pressured, approaching key support levels near 0.9100.](https://assets.iorbex.com/blog/wp-content/uploads/2024/05/02092216/USDCHF-chart-02.05.2024.png)
The US dollar dropped almost 100 pips as the pair fell towards the 0.9100 level. With the Fed holding its fund rate again, inflationary pressures remain as the 2% target this year seems to disappear. The recent move attempts to close below 0.9120 could lead to a longer-term bearish rally. Support at 0.9150 could bring some bulls back into play, but they need to reach the recent top above 0.9200. Another round of sell-off could send the greenback to the April lows around 0.9020.
SPX 500 remains indecisive
![SPX 500 Chart: Indecisive trading, resistance at 5100, support at 4950.](https://assets.iorbex.com/blog/wp-content/uploads/2024/05/02092236/SPX500-chart-02.05.2024.png)
The S&P 500 slipped after a modest resurgence. The index stopped with the recent Fed’s decision, suggesting a correction could be coming. The lack of strength above 5100 indicates that buyers are bailing out, with that level turning into a fresh resistance. The daily swing low of 4950 has become a firm support, and its breach would trigger a broader sell-off to the psychological level of 4800.