EURUSD – Continues to Be Sold on Pullbacks (4hr chart)
Maintaining our bearish bias over the last several days, the Euro initially founds support at 1.2215, but then later in the week broke through, treating the level as resistance (or a role reversal level). This intimates bears are happy to sell on pullbacks.
The current structure suggests lower prices, so if we get any weak pullbacks into resistance, we’ll look to be sellers. Downside targets 1.21 and 1.2050 short term. Only a daily close above 1.23 relieves the bearish pressure short term.
USDCAD – Pre-Breakout Structure Forming (4hr chart)
Continuing to press higher and holding the bullish trend bias we’ve talked about in prior commentaries, the USDCAD is in a corrective phase, while showing signs of a pre-breakout structure. Notice the higher lows on the blue line while the resistance at 1.1665 remains the same.
This intimates bulls are still in control of the price action, and will likely make an attack on the yearly highs. Watch for potential breakout trade setups in the coming days as I’m anticipating another leg higher.
Above 1.1660 puts pressure on 1.1750 and 1.1850. Only a daily close below 1.15 negates the short term bullish bias.
Also in today’s members trade setups commentary, we cover the GBPUSD & WTI Oil. Click here to become a member.