Talking Points
- Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time
- EUR/USD nearing critical near-term pivot
- USD/CAD holds key support line
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Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
ChartPrepared by Kristian Kerr
- EUR/USD has treaded steadily lower since failing last week at the 61.8% retracement of the May – July range near 1.1215
- Yesterday’s close below 1.1040 has shifted our near-term bias to negative on the rate
- A Gann angle line from the March low comes into play around 1.1000 and this looks to an important downside pivot for EUR/USD
- A minor turn window is eyed today/tomorrow
- A daily close above 1.1215 would turn us positive on the euro
EUR/USD Strategy: Square for now.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| EUR/USD | 1.0930 | *1.1000 | 1.1035 | 1.1080 | *1.1215 |
Price & Time Analysis: GBP/USD
ChartPrepared by Kristian Kerr
- GBP/USD traded at its highest level in over a month yesterday, but stalled at the 1x1 Gann angle line of the June high around 1.5720
- Our near-term trend bias is negative on cable while below 1.5720
- A move below Fibonacci support around 1.5560 is needed to re-instill some downside momentum in the rate
- The latter half of next week looks important from a cyclical perspective
- A daily close above 1.5720 would turn us positive on the pound
GBP/USD Strategy: Square for now.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| USD/CAD | *1.5560 | 1.5610 | 1.5640 | 1.5690 | *1.5720 |
Focus Chart of the Day: USD/CAD
USD/CAD remains in consolidation mode below the recent 1.3212 multi-year high. Following the breakout last month above the 2009 high the broader technical outlook is generally favorable with a move through 1.3212 needed to break the current impasse and unlock a medium-term run higher towards the 61.8% retracement of the 2002 – 2007 decline near 1.3500. The setback from the high has been relatively tame thus far as the low end of a median line channel drawn from the May low has supported downside attempts well. A daily close below this level (currently at 1.3045) would be an early warning sign that the correction is gaining traction, but only a clear break of last week’s low at 1.2950 would turn the near-term technical picture more acutely negative for funds.
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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
