USDCAD:
This continues to be an interesting pair to watch as many technicians believe the price action on the CAD will be a leading indicator for the rest of the G-7. Here are the Support & Resistance levels that traders will be watching. CAD Resistance sits at the 50 day moving average. A close below that levels implies further Dollar weakness ahead. CAD Support holds at 1.0710. A close above that level and the CAD bears may start to roam. The spread between the two points can be traded using faster intra-day charts, however, the longer term trend may not show itself until these levels are breached.
EURUSD:
The EUR has obviously been under tremendous pressure. It previously found Support just below 1.22, however, once that level was taken out Support moved down to 1.19. Near term Resistance is just north of 1.2550. More major Resistance holds at the 50 day moving average, currently at 1.2750. As price and the 50 MA are considerably distant from one another we continue to expect price and the moving average to converge. If the moving average holds firm Resistance then we will most likely see new lows. If however, price moves up further then 1.19 will hold for now.
USDCHF:
The Swiss Franc has a historically high positive correlation with Gold. However, that correlation has broken down as of late. The CHF found Support at 1.1625. Near term Resistance sits at 1.1425, while a break below 1.13 would be rather significant for the Franc. Beyond that point, and similar to the pairs above, a break below the 50 day MA would signal a possible change in market sentiment. The current trend though, is definitely favoring a strong dollar.
Written by bforex.com
