GBP/USD looks like it may have more room to go on the upside, but at this very moment price is extended. USD/CAD is on the verge of a significant breakdown, below 13000 will further this notion along. AUD/USD is up against a test of resistance amidst a strong downtrend, will it act as it did in September?
Technical Highlights:
- GBP/USD extended, on hold for the moment
- USD/CAD on the verge of breaking major support
- AUD/USD runs into resistance, trend still weak
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GBP/USD extended, on hold for the moment
GBP/USD has the market leaning the wrong way evidenced by its extraordinarily strong run in the near-term matching up with some of the biggest spikes in decades. It is short-term overbought, but barring a major reversal in recent Brexit momentum there is room to run to the May high at 13170 and March high near 13400. For now, waiting for price to digest a bit to see how the rally wants to hold, but it may not be long before another surge comes.
GBP/USD Daily Chart (overbought, but not yet at resistance)
USD/CAD on the verge of breaking major support
USD/CAD is cracking the 2012 trend-line, and on that a β3-2β pattern in place since December is on the verge of cracking open an even bigger β3-2β pattern off the 2016 high. The 3-2 formation is marked by three highs and two lows, with the price eventually catching momentum once the second low is broken. With this all taking shape around the 2012 trend-line, the timing is especially interesting. A break of 13000 is viewed as confirmation and could start a strong downtrend into year-end.
USD/CAD Weekly Chart (β3-2β pattern at 2012 trend-line)
USD/CAD Daily Chart (lower-low below 13000 could be big)
AUD/USD runs into resistance, trend still weak
AUD/USD has caught a solid bid recently, but can it last with the trend since last year so weak? It bounced hard in September but that was short-lived, could be similar this time. If there is a currency against the Dollar that might not act so well, it could very well be the Australian Dollar.
AUD/USD Daily Chart (watch for pullback from resistance
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
