Is EUR/CAD Ready to Drift Further North?

JFD Team JFD

After struggling for a couple of days to overcome the downside resistance line drawn from the peak of August 7^th, EUR/CAD bulls eventually managed to distance themselves from that line today. The move also brought the rate decently above the 200-EMA on the 4-hour chart, which combined with the fact that the pair is trading above a new short-term upside support line drawn from the low of September 11^th, paints a cautiously positive picture in our view.

Now, the bulls look to be heading towards the 1.4715 barrier, marked as a resistance by the peak of September 13^th, the break of which would confirm a forthcoming higher high and make us more comfortable with regards to further advances. We could then see extensions towards the 1.4765 zone, near the high of August 28^th, where another break may pave the way towards the 1.4855 zone, marked by the peak of August 26^th.

Shifting attention to our short-term momentum studies, we see that the RSI lies above 50 and points up, while the MACD, already positive, stands fractionally above its trigger line, pointing sideways. It could also turn north soon. These indicators detect upside momentum and support the notion for some further near-term advances.

On the downside, we would like to see a clear retreat back below the 1.4630 level before we start examining whether the bulls have left the building, and whether the bears have decided to resume the prior downtrend. Such a dip would bring the rate back below the downside resistance line taken from the high of August 7^th, as well as below the new short-term upside one. The sellers could then push the battle towards the low of September 16^th, at around 1.4555, the break of which may extend the decline toward the 1.4500 barrier.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.