Intraday Analysis - Tuesday, Oct. 20

SPX 500 investors buy the dip

The SPX 500 attempts to close higher as prices look to bounce back from the latest dip.

• The index hit support at 7640 as a bullish RSI could show a further swing higher.

• Intraday sellers have taken some chips off the table as they await the next signal.

• The index is looking to secure a foothold as 7500 remains an important floor.

• 7850 is the target higher in case of another test at a fresh peak.
  

USDCAD tests fresh lows

The pair tumbled as the bear rally kept up the pace to a fresh low.

• A break below 1.4200 was a strong bearish signal, forcing the remaining buyers to cover.

• A continuation is expected if the dollar sell-off continues.

• 1.4080 is the next target on the pair’s journey, as traders wonder where the next support area will be.

• A rebound requires a move above 1.4140 to regain control towards the previous high at 1.4200.

EURGBP bounces back

The pound slipped against the Euro as price action bounces away from the recent low.

• The pair is still striving to hold above 0.8400 and safeguard its latest rebound.

• A bearish breakout would shatter the little optimism left from earlier bullish attempts and drive price lower.

• On the upside, a close above the current resistance at 0.8450 would expose the swing high of 0.8490 to ease downward pressure.