Talking Points
- EUR/USD stalls near key Gann level
- USD/CAD suffers high volume breakdown
- Near-term cycle inflection point for GBP/USD
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Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- EUR/USD has come under steady poressure after failing last week near the 3rd square root relationship of the year’s low
- Our near-term trend bias is lower while below 1.0830
- A breach of 1.0585 is needed to set off a more important move to the downside in the euro
- A very minor turn window is eyed here
- A close over 1.0830 would turn us positive on the exchange rate
EUR/USD Strategy: Like the short side while spot remains below 1.0830.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| EUR/USD | *1.0585 | 1.0625 | 1.0675 | 1.0755 | *1.0830 |
Price & Time Analysis: USD/CAD
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/CAD fell sharply last week ater breaking below the early February lows
- Our near-term trend bias is lower in USD/CAD while below 1.2460
- A close below 1.2175 is needed to trigger the next meaningful leg lower in Funds
- A very minor turn window is eyed tomorrow
- A daily close above 1.2460 would turn us positive on USD/CAD
USD/CAD Strategy: Like the short side under 1.2460.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| USD/CAD | 1.2085 | *1.2175 | 1.2240 | 1.2275 | *1.2460 |
Focus Chart of the Day: GBP/USD
The recovery in GBP/USD failed on Friday near the 50% retracement of the late February-April decline. As aggressive as the reversal from 1.5050 has been we are not sure it necessarily means that the primary trend is trying to re-assert itself just yet. Short-term cyclical analysis suggests that the next 24 to 36 hours should prove key in determining if that is what is really going on. Continued weakness past today (ie. a lower daily close on Wednesday), for instance, would be a strong sign that the downtrend in the pound has indeed started anew. However, a higher close on Wednesday would throw a wrench in the negative cyclical argument and warn that Cable has a few more days and possibly even a few more weeks of upside left before the primary trend re-asserts itself.
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--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX
