News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Citi lowers China 2022 GDP forecast 4.9% from 5.5%, citing expected spillover from managed Evergrande restructuring
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/8p6STxmVC6
  • Spooz sub 50-DMA again. There’s been some selling overnight during the European sessions yesterday and today. Sure hope this doesn’t shape up into a H&S topping pattern, but has anyone else noticed lower highs and lower lows forming? 👀 $SPX $ES #SP500 https://t.co/Bf3Icn2T2H https://t.co/vf8jgtVstk
  • PBoC Governor - PBoC has the conditions in place to maintain a normal and rising yield curve - Sees no need to purchase assets now
  • Not today I’m afraid. I’m on holiday in Ventnor in the lovely Isle of Wight https://t.co/iIm6hBksLs
  • ECB's Villeroy - Inflation forecast justifies keeping loose ECB policy
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/T2Lg516oCq
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/wyMaa9BPYk
  • Japan PM Suga - To lift Covid state of emergency in all regions at the end of the month $JPY
  • Reminder that the 21st OPEC and non-OPEC Ministerial Meeting is scheduled for October 4th
EURUSD and USDCAD Reversal Days at Key Levels Shift Trading Bias’

EURUSD and USDCAD Reversal Days at Key Levels Shift Trading Bias’

Paul Robinson, Strategist

EURUSD rejected after trend-line breaks

The Euro was posting a solid day yesterday, trading above the trend-lines from February and September of last year as well as highs carved out last month, before turning lower to close near the lows of the session. This turnabout carved out a strong rejection candlestick, shifting focus lower.

Looking to the downside, with the way EURUSD has been trading for months now, a big down-move may not be in store but the near-term trading bias as long as yesterday’s high at 11306 is not breached, is now negative. Range conditions could persist which means the area just above 11100 could once again act as a solid floor.

However, risk is still skewed in favor of a downside breakout developing at some point given broader trend forces in place since the 2018 high. A breakdown below 11000 is seen as needed to get the Euro rolling downhill towards an eventual target of 10724, the April 2017 gap from the French election.

Trading Forecasts and Educational Guides for traders of all experience levels can be found on the DailyFX Trading Guides page.

EURUSD Daily Chart (Big rejection at resistance)

EURUSD and USDCAD Reversal Days at Key Levels Shift Trading Bias’

USDCAD turns off 17-mo t-line, bottom of range

USDCAD has been no easy handle with it lacking direction for weeks on end, but that doesn’t mean there aren’t trading opportunities still out there in the pair. Yesterday, we saw price rejected at the bottom of the recent multi-week trading range, which is in confluence with the trend-line from the end of January 2018.

It wasn’t a strong rejection like the one seen in EURUSD, but nevertheless it showed a willingness by buyers to show up at support. Barring a breakdown below 13362, yesterday’s low, look for USDCAD to try and trade back to the high end of the recent trading range, Jan ’16 trend-line, right around the 13500-mark.

Bigger picture forces still remain tentatively to the upside and as such an upside breakout could eventually develop, but traders will want to keep persistent range conditions in mind. On the flip-side, a breakdown below the 2018 trend-line would be considered a materially bearish event should such a break get separation. This will be discussed later should it become relevant.

USDCAD Daily Chart (rejected at support)

EURUSD and USDCAD Reversal Days at Key Levels Shift Trading Bias’

***Updates will be provided on these ideas and others in the trading/technical outlook webinars held at 9 GMT on Tuesday and Friday. If you are looking for ideas and feedback on how to improve your overall approach to trading, join me on Thursday each week for the Becoming a Better Trader webinar series.

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES