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

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