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Here's an update on a few of the setups we’ve been tracking this week. Find a detailed, in-depth review of these setups and more in this week’s Strategy Webinar.
USD/CAD 240min Price Chart
Earlier this week I highlighted the risk for a larger rebound in USDCAD after price, “precisely off median-line support last week… closing back above the 1.24-handle.“ The breakout of a near-term descending channel formation has fueled a rally in the pair with advance now approaching a key area of near-term resistance at 1.2579-1.26. This region is defined by the 2018 open, the 38.2% retracement & the 100-day moving average and converges on the 50-line of this near-term ascending pitchfork.
We could get some kickback from here – look for interim support at the median-line, currently around ~1.25 with near-term bullish invalidation now set to the weekly opening-range lows at 1.2398. A breach of the topside here would target subsequent resistance targets at 1.2663 & the upper parallel / 1.2715.
GBP/USD Heading into Super Thursday
The immediate focus for the British Pound is on a break of the 1.3843-1.3943 range heading into the BoE’s Super Thursday tomorrow. Cable remains within the confines of a near-term descending pitchfork but the decline is now testing support. I highlighted this setup including the near-term trading levels in today’s GBP/USD Scalp Report.
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EUR/USD 240min Price Chart
Euro broke below the lower parallel of the bullish pitchfork we’ve been tracking for months now. The decline is now approaching initial areas of interest for initial support at the confluence of former channel resistance and the 38.2% retracement at 1.2225- a break below this level would suggests a more significant high is in place. Such a scenario would target the 50% retracement at 1.2167 backed by the lower parallel of the operative downslope. Interim resistance now at 1.2323 with bearish invalidation lowered to 1.2409.
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---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex or contact him at firstname.lastname@example.org