Intraday Analysis - Wednesday, August 26

USDCAD tests major resistance

The Canadian dollar (USDCAD) looks towards the future as Donald Trump announces aggressive tariff measures.

• The pair has hit some resistance after a lengthy bullish upswing.

• This is a sign of relief for trapped buyers as the pair stepped back from reaching the 1.3900 level.

• A slide towards the immediate support of 1.3800 will show a lack of follow-through bids.

• 1.3750 is a critical floor and could cause a deep correction, unless the price extends towards the 1.3970 level.

NZDUSD breaks higher

The kiwi met stiff buying pressure as bears closed enough positions to cause a pullback.

• More sellers could join the game as the RSI slips to the neutral zone, causing a brief pullback.

• The psychological level of 0.6000 is the next hurdle higher.

• 0.5940 is a significant floor if the pair wants to stay afloat, with 0.5880 awaiting a test.

UK 100 hits a fresh peak

Global equities saw a continued push higher with tech stocks continuing the rally.

• The FTSE moved towards a fresh high after clearing and advancing from the 10800 level.

• A combination of short-covering and buying the dips could help the price remain above 10900

• A bearish reversal would attract those who are still indecisive, with 10750 acting as a fresh support.

• Otherwise, the index could move towards 10960.