News & Analysis
Eightcap Forex technical insights; Lower Highs setting up; USDCAD surprises after double bottom
Risk has mainly been stronger to the USD the surprise in tariff severity really got the rally going. The GBP has seen support from Brexit developments but that came crashing home after UK PM Teresa May’s comments. This week has been less confident from the buyer side with follow up rallies failing to make new closing highs on the AUD, EUR and GBP to the USD. The USDCAD, on the other hand, has seen strong buying as trade worry’s continue to hit the Canadian dollar.
Looking at the Daily charts;
AUDUSD – after a decent counter rally price has started to stall at a longer-term trend line. This is highlighted by the orange boxes. Price made a failed high after last nights FOMC statement. Price is setting up a lower high pattern. If buyers continue to fail around the trend line will we see a new leg lower? Sellers need to break .7240 show momentum in on the increase.
GBPUSD – show’s the best looking developing lower high for now, this started after UK PMs Brexit comments. The rally has been more drawn out, we can see a break of the fast trend with a clear lower high setting up with a failed inside high in last nights session. 1.3060 could offer buyer fightback if reached by sellers.
USDCAD – after buyers set up the double bottom price has been one way with 4 advancing sessions in a row, We can see that buyers have broken both the short and med-term downtrends. An inverse head and shoulders pattern is also forming but still requires the right shoulder. The key price wise was the double bottom, buyers fueled but continuing trade issues between the U.S. and Canada. The 1.3080 area looks like the next possible resistance area if reached by buyers.
Good trading from Eightcap
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