EUR/USD: we have a confirmed sell signal for the US dollar so further gains are expected.
USD/CAD: broke the August low at 1.2448 to target 1.2420/10 and eventually minor support at 1.2310/1.2290. This was yesterday’s low for the day.
GBP/CAD: we have shorts at first resistance at 1.7050/70 targeting 1.7000, perhaps as far as 1.6950/40.
Today’s Analysis
EUR/USD hit the next target of 1.1665/75 after a very important longer term buy signal. Next we look for a test of minor resistance at 1.1690/99. We should struggle here initially but shorts are probably too risky. Better to buy on weakness here and a pull back to support. An obvious buying opportunity at 1.1620/00, (we held just 6 pips above here as I write this morning) with stops below 1.1580. A break lower is an unexpected sell signal targeting 1.1540/30.
USD/CAD hit our target and very minor support at 1.2310/1.2290 with a low for the day yesterday. If we continue lower, eventually look for 1.2270 and 1.2250/40. Gains are likely to be limited with minor resistance at 1.2380/90. Strong resistance at 1.2450/70. Shorts need stops above 1.2485.
GBP/CAD is holding first resistance at 1.7050/70. Stop above 1.7090. A break higher is an important buy signal targeting 1.7155/75 and 1.7195, perhaps as far as 1.7240/50. Minor support at 1.6950/40. Further losses are likely eventually to 1.6910/1.6890. Ultimately we are looking for the target of 1.6870/60, perhaps as far as support at 1.6800/1.6780.
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