USD/CAD: A break above 1.3725 allows a further recovery

Jason Sen DayTradeIdeas.co.uk

EUR/USD – USD/CAD

EURUSD remains in an awkward sideways trend, with the inside day only emphasising the lack of direction. We topped exactly at first resistance at last week's high at 1.1335/45 & bottomed exactly at best support at 1.1265/55.

USDCAD also in a sideways trend as predicted a couple of weeks ago.

Daily Analysis

EURUSD holds best support at 1.1265/55. Longs need stops below 1.1240. A break lower targets 1.1215/05, perhaps as far as strong support at 1.1180/70.

Longs at at 1.1265/55 target 1.1300/1290 with resistance again at 1.1335/45. Scalping strategy is still the only way to trade the pair. Be ready to buy a break above 1.1360 for a retest of the June high at 1.1410/20.

USDCAD edges back to the 1.3610/20 target & topped exactly here. A break higher targets 1.3635/45 with resistance at 3 week highs at 1.3705/15. A break above 1.3725 allows a further recovery to strong resistance at 1.3790/1.3800.

Minor support at 1.3575/65 but longs need stops below 1.3550. Next target & support at 1.3500/1.3490. Longs need stops below 1.3470. A break lower is a sell signal targeting 1.3465/60, 1.3440/30 & perhaps as far as 1.3400/90.

Trends

Weekly outlook is neutral.

Daily outlook is neutral.

Short Term outlook is neutral.

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD breaks below 1.1800, two-week lows

EUR/USD’s selling pressure is gathering pace now, breaching below the key 1.1800 yardstick to hit new two-week troughs on Wednesday. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and ahead of the publication of the FOMC Minutes.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.