The Dollar picture has continued to be a sore spot for traders as directional bets are easy to fail, quick to reverse. USDCAD is showing lots of weakness and approaching an important long-term form of support. GBPUSD is also at a big long-term trend-line, which makes how it reacts here a key development to watch. EURJPY, like the USD pairs we are looking at today, is trading around an important area of support.
Technical Highlights:
- USDCAD weak, about to test trend-line from 2012
- GBPUSD hovering around October 2016 trend-line
- EURJPY testing the 2012 trend-line for a 3rd time in 6 weeks
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USDCAD weak, about to test trend-line from 2012
USDCAD is currently displaying weak price action as it approaches the 2012 trend-line. It will be an important test, as the current decline on the weekly looks similar to the one that unfolded during 2017. Watch how price action plays out at the trend-line, a hold will keep it afloat while a drop below the long-term threshold will further the notion that we are seeing a redux of the 2017 breakdown from a grinding upward, corrective channel.
USDCAD Weekly Chart (2017? | 2012 t-line)
USDCAD Daily Chart (weak price action)
GBPUSD hovering around October 2016 trend-line
Cable is trading around the trend-line rising up from the October 2016 flash-crash low. It breached it on a daily basis, but given the long-term nature of it we need to give it a little room. The trading bias isn’t very strong, but for those trading it from either side it is a big line-in-the-sand to be mindful of. I also discussed a few of the other GBP-pairs at major cross-roads (see video).
GBPUSD Weekly Chart (hanging onto Oct ’16 t-line by a thread)
EURJPY testing the 2012 trend-line for a 3rd time in 6 weeks
EURJPY is firmly testing the trend-line rising up since 2012. Multiple tests are taking shape and so far, it is holding, but not with a whole lot of conviction. A breakdown could have the January flash-crash low just 119 in play, while a hold keeps EURJPY moving sideways for now.
EURJPY Daily Chart (2012 t-line under siege)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
