Intraday Analysis - Tuesday, August 25

GER 40 holding on

The Dax (GER 40) remains choppy as the Euro zone awaits more inflation data.

• A sharp fall away from 26300 is a sign of inconsistency by short-term buyers.

• The RSI has recovered into neutral territory as sellers take profits

• The index is yet to stabilise from last week’s sell-off.

• The recent lows at 26000 and 25850 are the levels to see if sellers are looking for a way back into the market.

EURUSD tests recent high

The Euro continues to outmaneuver the greenback as price action attempts to hit another higher high.

• The pair currently found support at the mid 1.1500 area at the beginning of this month.

• Sentiment shows that buyers are in control, as the pair moves to test the 1.1720 level.

• However, a bearish divergence on the RSI could turn things around.

• A move below 1.1600 will cause another sell off which could hit a fresh low at 1.1550.

GBPCAD continues higher

The pair looks for another fresh peak as prices look to bounce back from the recent correction.

• A close above the recent high will attract more momentum buyers, sending the pair above 1.8920.

• 1.8880 is the immediate hurdle, and the RSI’s overbought condition could prompt bulls to change sentiment.

• The recent double bottom at 1.8740 is a vital support to keep the bulls challenging for another high.