Cad, Eur, Aud Highlights:
- USD/CAD reversed off trend-line resistance
- EUR/USD broke the October trend-line
- AUD/USD is testing important trend support
USD/CAD rallied strongly on Wednesday, but was followed by a test of a trend-line from 2017 that turned into a mini failure. The reversal yesterday could spell some short-term weakness at the least. A close above 13171 will negate the reversal.
It’s been a see-saw market with rallies fading and sell-offs reversing, which means the current leg up is at risk. One of these days a move will sustain, but until we see signs of a one-way move staying that way, we will need to continue to trade the price action for what it is.
USD/CAD Daily Chart (reversing off trend-line)
EUR/USDmay have finally broken the support that it needed to in order for it to gain some momentum. The trend-line off the October low was broken decisively, and while there is some price support around 11000 to watch the broader downtrend suggests a test is in order of the lows from October created under 10900.
EUR/USD Daily Chart (broke trend-line support)
AUD/USDis currently sitting on a fairly important trend threshold. The tend-line (lower parallel) rising up from the October low is under siege, and with the way it is lacking any interest so far, suggests it could soon break. However, it is important to wait for it to actually break before running too aggressively with a bearish bias. It’s support until it’s not. It could also be viewed as a solid risk/reward long for would-be longs.
AUD/USD Daily Chart (testing important trend support)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
