USD pushes higher amid equity market pressure

Rebound in play on the USDCAD while GBPUSD falls back on support.

Charts (2)

The US Dollar was higher against all of its major pairs on Monday. On the US economic data front, no major economic data was released. 

On Tuesday, Existing Home Sales for August are expected to increase to 6.00 million on month, from 5.86 million in July.          

The Euro was higher against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, no major stats were reported.  

The Australian dollar was under pressure against most of its major pairs with the exception of the NZD.

The GBP/USD dropped 124 pips to 1.2793 in late-day trading on Monday making it the days largest mover among the major pairs followed by the USD/CAD which jumped 106 pips to 1.331.

Looking at a daily chart of the GBPUSD, prices have fallen back into a major overlapping support area. Look for a break below 1.2750 for a continuation lower towards 1.251 support. A break above 1.2985 could call for a resumption of the prior uptrend. 



Source: GAIN Capital, TradingView

The USDCAD has started to rebound after breaking above its 50-day moving average (In Blue). As long as 1.3035 remains support, look for higher price action towards 1.3505 resistance in what could be the start of a major rebound higher. 



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.