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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Aj51jJraPw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.37%, while traders in NZD/USD are at opposite extremes with 72.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/l8kBNxbrIK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.37%, while traders in NZD/USD are at opposite extremes with 73.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/104D8ytLwb
  • BNP Paribas sees Brent crude oil averaging $44/bbl in 2020 and $59/bbl in 2021
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/1TOiApxfjp
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: -0.44% Oil - US Crude: -1.23% Silver: -1.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mBBDXIGnyn
  • US is considering curbing special exemptions for Chinese firms, according to Politico
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.06% 🇨🇭CHF: -0.22% 🇨🇦CAD: -0.23% 🇯🇵JPY: -0.29% 🇳🇿NZD: -0.39% 🇦🇺AUD: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rst0kqdDrJ
  • Coming up at half past the hour. Please join me if you can... https://t.co/R2GcBc8KXS
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: -0.79% Wall Street: -1.00% France 40: -1.13% FTSE 100: -1.35% Germany 30: -1.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u3dcuMGQBh
USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

2019-06-21 11:01:00
Paul Robinson, Strategist
Share:

USDCAD could play out like it’s 2017

The drop off the 2016 high led to a choppy extended rising channel that eventually broke hard in 2017. That break was then followed by another choppy extended rise from the middle of 2017 to early this year. The channel is longer, but still holds that same bearish-looking overlap in price that smacks of a corrective move.

We are seeing USDCAD this week begin declining out of the upward channel, and on that it could soon start to deteriorate in rapid fashion as it did a couple of years ago. There is support not far away via the last low in the channel structure created in January at 13068, and then the trend-line from 2012.

But if things are about to get ugly for the Dollar and we are in fact having a replay of 2017, then those should prove only to be minor speedbumps. Trades in the near-term still have room on the downside to develop before hitting these speedbumps.

Selling rallies and consolidations are a prudent approach to take here over chasing extended down-moves. There is resistance of varying angles (see chart) from 13238 up to near 13300 to watch for signs of stalling upward momentum.

If big-picture forces are to push USDCAD lower, then there should be a few good short-term sets that form along the path of least resistance that could lead to a revisit one day of the 12000 level.

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

USDCAD Weekly Chart (ready to breakdown, perhaps 2017-style?)

USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

USDCAD Daily Chart (watching for bounce/consolidation)

USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

EURGBP has longer-term resistance, short-term price patterns

EURGBP isn’t a pair I touch much, as it doesn’t seem to offer a lot of great looks from my perspective. However, now is looking like one of those times where it could indeed set up nicely, with a few technical developments taking shape.

For starters, there is a trend-line running down off the 2017 high which brought in the largest group of sellers since rising off the bottom early last month. If the rally today were to falter, we could see a bit of a weekly reversal situation.

Pulling into the 4-hr time-frame, an upward channel structure has kept EURGBP guided higher for the better part of a month, but with selling on Tuesday and Wednesday the bullish pattern was snapped. But to confirm a break of these types of sequences, a decline below the most recent low inside the channel is desired.

A break of that low may be coming soon if a right shoulder of a head-and-shoulders (H&S) pattern forms. A turn down from around current levels and subsequent break of 8871 on a closing 4-hr basis will trigger the H&S pattern (also create a lower-low) and should set into motion a move towards just under 8800, the bottom of the rising channel.

My colleague, Daniel Dubrovsky shares a similar view, check out this piece for his take on EURGBP.

EURGBP Daily Chart (backing off trend-line)

USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

EURGBP 4-hr Chart (Channel broke, H&S pattern forming)

USDCAD and EURGBP Technical Set-ups, Both Looking Weaker Ahead

***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

News & Analysis at your fingertips.