By breaking down the price level of 1.5050, the bears confirmed a long-term Head and Shoulders bearish reversal pattern. The bears managed to break down to 1.4950, then 1.4730 corresponding to 50% and 61.8% Fibonacci levels. Two bullish spikes were expressed above 1.4950 (50% Fibonacci level on the daily chart) took place.
One month ago, the bears initiated a bearish trend off price levels around 1.7150-1.7190.
For the audusd pair there is still trouble ahead as the path of least resistance seems to be still to the downside and not the upside like recent price action might indicate. The thing is that the pair is consolidating for the last 5 months around 0.95 and 0.9300 levels, so 200 pips range that tells everything about what summer trading means. However, things are about to change as we’re getting closer to the Fed ending the tapering and probably with the Fed rising the rates sooner than expected.
USD/CAD is turning a bullish breakout signal into a bearish one this week. At the beginning of the week, USD/CAD broke above a resistance at 1.0985 and looked poise to rally toward the next resistance around 1.0150 from April
This Friday cannot come soon enough for some forex market participants. So far this week, investors have been starved for fundamental data to back their currency positions.
The following are the intraday outlooks for the USD Index, EUR/USD, NZD/USD, USD/CAD, and EUR/CHF as provided by the technical strategy team at SEB Group. USD INDEX: Starting to correct the stretch.
Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was established. Bullish rejection was expressed at retesting the lower limit of the bearish channel around 1.0630 (It’s the origin of the previous bullish impulse initiated in December 2013 as well). This enabled the bulls to achieve a bullish breakout off the depicted channel
One month ago, the bears initiated a bearish trend off price levels around 1.7150-1.7190. Since then, the GBP/USD pair has been declining within the depicted bearish channel. The price levels of 1.7050 – 1.7000 failed to provide enough support for the pair.