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

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.