The Euro is sitting between a pair of a levels at the moment with a downward trend bias; tactically, it’s in a tough spot but with some good levels to keep an eye on. USDCAD has been rejected numerous times around the 200-day, which puts the ball in the court of short-term sellers for now. AUDUSD has room to go before reaching a significant area of support thoroughly tested on several occasions recently.
Technical Highlights:
- EURUSD in between levels, strong support below
- USDCAD reversals put trading bias in favor of shorts
- AUDUSD has room to drop towards big support
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EURUSD in between levels, strong support below
The Euro is in between levels/lines right now, with off the declining upper channel line from June but above the support created this month around the Nov 2017 trend-line. This makes positioning for a move difficult. The time for shorts has passed and the trend and lack of support leave no appeal for longs. On further weakness watch how price responds to the 10926 level, it’s a big one with the ECB-day rejection having unfolded there as well. A breakdown will keep EURUSD rolling downhill, with potential to finally fill the April 2017 French election gap at 10726.
EURUSD Daily Chart (support at 10926)
USDCAD reversals put trading bias in favor of shorts
USDCAD has reversed recently on a few occasions right around the 200-day MA. This is putting the pair at risk of finally giving up and trading lower in the days ahead. The near-term trading bias is down, but there isn’t a lot of room before the trend-line from July arrives and even the long-term 2012 trend-line isn’t of great distance. This means while the short-term trading bias is lower, swing-traders might not have a lot of room to work with due to congestion.
USDCAD Daily Chart (multiple rejections at 200-day)
AUDUSD has room to drop towards big support
AUDUSD turned down with a good amount of force last week, putting it in position to continue on lower. There is significant support down in the 6689/77 vicinity via three forceful rejections from that tight zone. Room is left for shorts, but should support be met soon then traders should be on the look-out for a bounce to develop, even if it is only temporary.
AUDUSD Daily Chart (strong support @ 6689/77)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
