The following are the intraday outlooks for the USD Index (DXY), EUR/USD, EUR/GBP, and USD/CAD as provided by the technical strategy team at SEB Group.
USD INDEX: Bull triangle ready to burst. The past days has been spent consolidating in a narrowing range, a bull triangle on top of the mid body point of the latest rising benchmark candle. The hourly internal wave pattern (five waves, a-e) appears to be in place so a break higher will probably occur within shortly. The triangle should also be seen as gathering strength for a new attempt to return above the 55d ma band, reigniting the longer term bull trend.
EUR/USD: Bearishly below the mid body. We’re now into the third day of consolidating the recent falling benchmark candle (Tue) so today or by latest Monday the decline should be resumed. The strategy hence remains the same today as yesterday, selling upticks into the 1.1220/50-area.
EUR/GBP: Ready to break lower. The initial minor bounce yesterday might very well have ended an anemic wave E. We should thus now stand ready for a downside exit from the past months bear triangle with a move below 0.7081 being the first stronger sign that the next and final step lower has begun.
USD/CAD: Longs should only worry under 1.2275. A near-term buy was triggered yesterday on a pullback to (and below) 1.2563. A protective sell-stop on those is recommended at/just below 1.2276. A push back up through local resistance at 1.2358 & 1.2400 is expected and wanted to confirm a correctional trough. Extension through 1.2423 would face minor resistance at 1.2442 & 1.2473 onwards a short-term 1.2563 "Double-top". Current intraday stretches are located at 1.2255 & 1.2435.
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