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USDCAD: Watch for a breakout above 1.313

EURUSD (1.107): EURUSD has been bouncing off the 1.105 – 1.10285 support level for nearly 11 days so far with nothing to show for. The minor Resistance seen at 1.1124 is likely to keep Price Action remain in a consolidation, but a breakout off this level could see near-term strength in prices. To the upside, EURUSD is seen testing 1.123 – 1.1214 resistance level marking a retest of the head and shoulders pattern, while to the downside, a breakout below 1.10285 could trigger further declines to 1.0810 – 1.0750. We continue to maintain the view for the EURUSD downside, potentially from 1.123 – 1.121 levels.

EURUSD: Not letting go of 1.12
EURUSD: Not letting go of 1.12

USDJPY (103.06): USDJPY has formed a bullish divergence near the lows of 100.53 and in the process broke above the 101.5 level of minor resistance. A continuation to the upside is likely to see USDJPY potentially test 106 – 105.5 levels of resistance. A dip back to 101.54 could potentially confirm the bullish view to the upside. However, we expect to see USDJPY turn range-bound over the near term, with price action likely to stay flat within 105/106 and 101/102 levels, unless the price action is backed up by strong fundamentals.

USDJPY enjoying the bounce. 105 in question
USDJPY enjoying the bounce. 105 in question

GBPUSD (1.307): GBPUSD has been trending lower after falling below 1.322 support. Price action is currently seen forming a base and a daily close above 1.312 could see near-term strength in the British pound. The unfilled gap from June 24 at 1.3677 remains a key level of interest above 1.322. The fundamentals that could likely support the upside view is this Thursday’s Bank of England’s interest rate decision, where the markets currently price in a 25bps rate cut. Failure to act at July’s meeting could see the sterling post some strong gains while also putting a squeeze on the weaker shorts at the current levels.

GBPUSD: Beware of a potential short squeeze
GBPUSD: Beware of a potential short squeeze

USDCAD (1.311): USDCAD is starting to show initial signs of a potential breakout from the 1.313 – 1.252 level it has established. USDCAD has been trading in this price zone since early March, and a breakout above 1.313 could signal further upside with gains seen extending to 1.3696 – 1.375 region. The bullish ascending triangle is seen on the chart further adds to this view.

USDCAD seen testing resistance at 1.3136
USDCAD seen testing resistance at 1.3136

USDCHF (0.9833): USDCHF has been consolidating around 0.9774 level for the past few days and with no follow through on the still evolving head and shoulders pattern, there is a scope that USDCHF could be looking to break higher. Support is seen at 0.9774 followed by the next resistance level of 0.9928 and eventually 1.0150. To the downside, a breakout below 0.9774 and the lower median line will quickly shift focus back to the prevailing H&S pattern in which case an initial test to lower support at 0.954 can be expected.

0.9774 remains the main price level of interest
0.9774 remains the main price level of interest

The post USDCAD: Watch for a breakout above 1.313 appeared first on Orbex Forex Trading Blog.



This post first appeared on Orbex Forex Trading Blog - Forex Trading Library, please read the originial post: here

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USDCAD: Watch for a breakout above 1.313

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