The Dow index (US 30) hitting some resistance
The Dow index retreated slightly after testing all-time highs as the Fed indicated that a rate cut is imminent. The mood has turned cautious at 41400, with an overbought RSI on the chart calling for a breather after weeks of uninterrupted rally. A drift below the previous swing low of 41300 has put late-comers on the defensive but could be an opportunity for early buyers to take profit. 40800 is the level to see if trend followers would support the market or if the index could be vulnerable to another correction.
USDCAD breaks lower
The greenback softened even further as the pair hit a new multi-month low. Price action has made its way back to April’s low of 1.3480 as buyers were prompted to cover their bets, driving the quote lower. A bullish pullback would turn the tables by confirming the constant oversold status on the RSI and would help the greenback regain the upper hand. 1.3540, then 1.3600 at the origin of a liquidation, would be the next target, with 1.3450 as the first support.
EURGBP maintains a bearish channel
The pound advanced after prices remained in the bearish channel dating back to the beginning of the month. After the price secured a foothold below 0.8500, bears seem to have gained the confidence to push lower. The latest move to 0.8440 has further put the buy side under pressure, and a breakout could trigger an extended rally towards 0.8370. On the upside, 0.8525 is the immediate resistance, and 0.8600 is a critical level for keeping the rebound bias intact.