The Euro is still winding up for a move, but will support again reject the notion that it comes to the downside? At least for now? USD/CAD blasted off from support this past week, posting a big bullish candle; same with AUD/USD in reverse. If the bars hold true through the end of today, an early week retracement may offer a follow-through entry.
Technical Highlights:
- EUR/USD testing support (again)
- USD/CAD big bullish weekly candle, if it holds
- AUD/USD rejected in bearish fashion similar to $/CAD
See where our team of analysts see your favorite markets and currencies headed in the months ahead on in the Q1 Trading Forecasts.
EUR/USD testing support (again)
EUR/USD remains a difficult handle from a strong directional standpoint, and while at some point it will move again in a big way until it does we must continue to navigate what is on our screens. There is good support from around 11320 down to 11268 that may put a short-term floor in. A solid break below all those lows going back to last year will be good reason to get excited about a much larger move lower taking shape.
EUR/USD Daily Chart (t-line, 200-day)
Check out the recently released Q1 Euro Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
USD/CAD big bullish weekly candle, if it holds
USD/CAD has data coming up this morning by way of the jobs report, but if this week’s strength can be maintained or built on, then the weekly candle off trend-line/200-day support bodes well for more upside next week. Ideally, we see the week finish strong then get a minor early week pullback for a buy-the-dip opportunity.
USD/CAD Weekly Chart (Powerful candle if it holds)
Check out the recently released Q1 USD Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
AUD/USD rejected in bearish fashion similar to $/CAD
Basically, in reverse of USD/CAD, Aussie has turned down strongly from the confluence of the trend-line/200-day MA. This has created a powerful weekly candle, which like in CAD, could lead to more momentum next week. A weak then failing bounce early next week is the preferred approach for taking advantage of further weakness.
AUD/USD Weekly Chart (bearish candle off resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
