USDCAD pressured by bearish divergence
The greenback continued to struggle as global recession fears linger. Sentiment remains cautious after the pair fell lower and now sees the immediate resistance 1.3700 as a critical price cap. With a long-term bearish divergence still in play, traders will look at the 1.3600 zone as the next target. Any sign of a turnaround first needs a 1.3780 break before returning to the recent peak above 1.3900. 1.3650 is a critical floor to prevent further sell-off.
AUDUSD bounces after false spike
The Australian dollar found its footing after moving higher after an alleged false spike to the downside. The current double top at 0.6550 shows tempered enthusiasm after the recent rally. A combination of profit-taking and fresh selling drove the pair lower in search of new support before a move back above the recent consolidation zone. 0.6600 is the first level to see if buyers start to accumulate again. A close back above 0.6750 would extend the rally beyond the psychological level of 0.7000.
NZDUSD finds support
The New Zealand dollar shared the same rhetoric as the Aussie, with a jump higher after the recent spike. A break above the critical area of 0.6000 suggests a solid bullish drive, forcing sellers to cover their positions and potentially opening the door to a sustained recovery. As the dust settles, the price consolidates gains with the former resistance of 0.5940 as the closest support. The RSI’s overbought condition could attract some selling interests, and 0.5980 is the first hurdle to clear.