EUR/USD: Longs need stops below 1.1925

Jason Sen DayTradeIdeas.co.uk

EUR/USD, USD/CAD, GBP/CAD

EURUSD lower as expected but broke best support for the day at 1.2050/40. However we bottomed exactly at the next target & support at 200 day moving average at 1.1995/90.

USDCAD rocketed through strong 9 month trend line & 200 week moving average resistance at 1.2180/1.2200 for a very important longer term buy signal & an excellent swing trade opportunity over the summer.

GBPCAD tests 5 week trend line resistance at 1.7170/80 & tried a break above but failed at 1.7206.

Daily analysis

EURUSD bottomed exactly at the 200 day moving average at 1.1995/90. However I would not rely too heavily on this as support today. A break lower meets a buying opportunity at 1.1950/40. Longs need stops below 1.1925. A break lower is a medium term sell signal.

Gains are likely to be limited with first resistance at 1.2040/50. Further unexpected gains meet strong resistance at 1.2080/90.

USDCAD buy signal on the break above 9 month trend line & 200 week moving average resistance at 1.2180/1.2200 initially targets 1.2330/50. On further gains look for 1.2400/10.

Downside is expected to be limited with minor support at 1.2225/20 then better support at 1.2180/60. Longs need stops below 1.2145.

GBPCAD struggling to make a move. Not the best market to trade as other markets breakout. A break above yesterday’s high at 1.7206 should be a buy signal initially targeting 1.7240/60, perhaps as far as 1.7300/10.

Minor support at 1.7120/10 before 3 week trend line support at 1.7035/25. Longs need stops below 1.7015. A break lower to can target 1.6955/45.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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