Exciting week once again, exciting because USD/CAD went the same direction as EUR/USD and GBP/USD, again because this has happened several times this year already! Just like before, I’ll take my losses on EUR/USD and GBP/USD, sorry for the late update. I had intended for this to come out this morning but I had some errands to run first so I was out all morning. So, let’s get onto the analysis…
Commentary / Technical Forecasts:
USD/CAD [Long (C)]: Both the lower and upper TL was broken this week but neither led to a break out. USD/CAD managed to break above parity though, but bears took over shortly afterwards for the big bounce down. Going forwards, I like the fact that we broke the weekly downward TL but I don’t like the rejection off of parity. If you look on H4, I drew an upward TL and PA is currently sitting on this line, used to be resistance now will hopefully act as support to help a move upwards. Breaking this going down means more consolidation or possibly just breaking down altogether.
AUD/USD [Short (C)]: Not too sure on this one, the daily chart formed a pinbar on the daily support level which coincides with the lower TL bounce. Could be coincidental or on purpose, this will bounce up a little more to meet the upper TL before bouncing back down (hopefully). So this has a twist this week, two conditions. One for the upper TL to hold and one for the daily support to break once it comes back down.
EUR/USD [Short (C)]: Should be in the same boat as GBP/USD although this is more like AUD/USD in that it has some room to move to the upside before it reaches a TL to bounce back down. If that trendline doesn’t hold, we’re looking at a new trend upwards. Switching to the weekly chart will show the current reversal in progress if all the downward TLs are broken, then it’ll likely be on it’s way back up.
GBP/USD [Short (C)]: It consolidated after the bounce from last week, now it’s back in the same position it was in 2 weeks ago getting ready for a trip downwards assuming the monthly TL holds. If the monthly doesn’t hold, this is starting to look like it may just break that monthly TL and form new lines thereafter.
Until next week, Good Luck Trading!