EUR/USD sees a good recovery from the most support for last week at 1.1700/1.1690 to 1.1785. We could be forming an inverse head and shoulders on the 1 hour chart with neck line at 1.1780/90.
USD/CAD dipped as far as 1.2527 and held first resistance at 1.2580/90.
Today’s Analysis
EUR/USD's break above a small inverse head and shoulders neck line at 1.1780/90 is positive for today and can target 1.1820/30, perhaps as far as 1.1850/60 this week.
Minor support at 1.1750/40 (and we bottomed exactly here on Friday). Best support at 1.1710/1.1690 (where we watch for a double bottom bullish pattern). However a break below 1.1675 is likely to trigger further losses to 1.1640/30 and perhaps as far as 1.1610/00.
USD/CAD retraces about 40% of the recent recovery to hit 1.2527. First resistance at 1.2580/90. A break higher can target last week’s high at 1.2635/45. A break above 1.2650 targets first resistance at 1.2685/95. Bulls then need a break above 1.2700 to trigger further gains.
First support at 1.2540/30 could hold the downside. Below 1.2520 however targets 1.2500/1.2480. Below 1.2460 risks a slide to to 1.2430/20 before a retest of the March low at 1.2370/60.
Disclaimer: No representation or warranty is made as to the accuracy or completeness of this information and opinions expressed may be subject to change without notice. Estimates and projections set forth herein are based on assumptions that may not be correct or otherwise realized. All reports and information are designed for information purposes only and neither the information contained herein nor any opinion expressed is deemed to constitute an offer or invitation to make an offer, to buy or sell any security or any option, futures or other related derivatives.