EUR/USD – USD/CAD
EURUSD breaks important support at the 2019 low of 1.0885/77 for a sell signal targeting 1.0840/30 (hit yesterday) then 2 year trend line support at 1.0810/00 for profit taking on shorts.
USDCAD bottomed exactly at strong support at 1.3240/30 & held above here all day. Obviously this is key to direction today.
Daily Analysis
EURUSD hit the next downside target of 1.0840/30 yesterday as we look for 2 year trend line support at 1.0810/00 for profit taking on shorts. A weekly close below 1.0790 tonight is a sell signal for start of next week despite severely oversold conditions.
Bulls need to use 1.0810/00 to regroup. It is a low risk long trade in oversold conditions with stops below 1.0790. If a bounce from here is seen, look for 1.0830/35 & 1.0860/65. Above 1.0875 targets 1.0890/1.0900.
USDCAD bottomed exactly at our buying opportunity at 1.3240/30 with a 30 pip bounce followed by a second buying opportunity at the level yesterday. Further gains today target 1.3275/85. Above 1.3295 look for 1.3310/20 before the high at 1.3329, coupled with strong resistance at 1.3345/50. Shorts need stops above 1.3365.
Best support at 1.3240/30 & we held exactly as predicted. However be ready to sell a break below 1.3220 for a buying opportunity at 1.33185/75, with stops below 1.3160.
Trends
Weekly outlook is neutral.
Daily outlook is neutral.
Short Term outlook is negative..
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