EUR/USD Drifts Lower: Technical Analysis and Key Levels to Watch
The US dollar has continued to gain ground, supported by optimistic PMI data in February. On the daily chart, a bearish moving average (MA) cross formed after the price breached the moving averages, indicating a potential correction after a three-month uptrend. The currency pair is currently hovering around the 1.0610 support level, which marks the demand zone from a bullish breakout in January.
The nearest obstacle for the EUR/USD pair is at 1.0720, with a clean break above the twice-tested resistance level of 1.0790 needed to reverse the short-term sentiment. If this resistance level cannot be surpassed, the euro could slide toward the crucial support level at 1.0500.
Stay informed about the latest developments and technical analysis of the EUR/USD pair to make informed trading decisions.
USD/CAD Rebounds as Inflation Concerns Weigh on the Canadian Dollar
The Canadian dollar has taken a hit as easing inflation may keep the Bank of Canada (BoC) at bay. However, a break above the supply zone of 1.3470-1.3510 has helped the bulls regain control of the USD/CAD direction.
A series of higher highs is a sign of mounting buying pressure and, so far, buyers have seen pullbacks as opportunities to stake in. Fresh support at 1.3440 and an important level at 1.3360 are critical to keeping the upward bias intact.
Although resistance could be felt near the previously failed support at 1.3560, a rally could extend to the daily resistance of 1.3660. Overall, the USD/CAD has rebounded with bullish momentum, signaling the potential for further gains.
FTSE 100 Consolidates Amid Fears of BoE Rate Hikes
The FTSE 100 has turned lower on fears of potential rate hikes by the Bank of England. Daily chart analysis shows the RSI is in an overbought condition, suggesting overextension in the market. However, there is currently no confirmation of a fallback. An hourly chart shows a bearish RSI divergence, indicating deceleration. The immediate support level is at 7930, with potential confirmation in these time frames. The 30-day SMA at 7870 is a key level to assess the strength of follow-up interests. A close above 8030 would resume the uptrend.
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