Matt Simpson, CFTe, MSTA
CityIndex
MARKET SNAPSHOT:
UP NEXT:
TECHNICAL ANALYSIS:
USDCAD: Seeking to fade into resistance
Following the retracement the losses came hard and fast yesterday. It didn’t quite reach my preferred downside target but there is potential for another leg down today.
WTI and Brent appear strong on the near-term which should provide CAD strength. Also due to the fast decline in USDCAD it favours a relatively shallow retracement (such as 38.2% over 50%) before losses resume.
GBPUSD: The downside prevails
The anticipated bounce yesterday clearly did not happen. With USD Index looking increasingly bullish and Cable printing fresh lows we could be hitting 1.52 directly if early price action is anything to go by) Assuming we do break below 1.525 cleanly that is). If not, we may see an upside spike towards the daily pivot.
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