Intraday Analysis - Tuesday, April 7

USDCHF spikes lower

Our USDCHF analysis shows that the Swiss franc remained on the front foot even though the dollar previously bounced back slightly. On the chart, a close below 0.8000 and a bearish RSI divergence suggested sentiment could be turning around.

• The latest upward move stalled at 0.8020, prompting a bounce lower, with 0.7920 the next target.

• A break there would pave the way for an extended rally towards 0.7950.

USDCAD turning around

Prices remain in a choppy consolidation, finding resistance at the mid-1.39 region.

• The pair is looking for a higher wave, as impulse buying has pushed it towards 1.3950.

• Additionally, the recent move into the neutral area of the RSI has bolstered bullish sentiment.

• A decisive break below 1.3865 would trigger a runaway rally and extend the near-term downtrend towards 1.3770.
  

UK 100 breaking higher

The FTSE edges higher as traders look at a potential ceasefire in the Middle East. The index looks to continue the recent trend as prices search for a break above 10470. A correction could take shape if there is a shift in fundamental sentiment.

• The RSI’s overbought condition has attracted some sellers, which could dampen a meaningful recovery.

• A fall below 10300 could prompt bulls to bail out, triggering a liquidation towards the daily support at 10000