EUR/USD puts bulls in charge
Euro bulls are looking to build on yesterday’s gains, in hope that Mario Draghi’s European Central Bank (ECB) appearance will provide little new information, and certainly none on fresh monetary stimulus.
The pair now needs to push on above $1.1220, key resistance in the second half of May, while above here the next target is the 50-day simple moving average (SMA) at $1.1309. It would need a close below the 200-day SMA at $1.1098 to suggest the bounce has run its course.
AUD/USD in the balance
It is a case of ‘two steps forward, and one back’ for the pair at the moment, as fundamental data overnight and the 200-day SMA ($0.7254) intervene to prevent further gains.
Longs may find the ground cut from underneath them should the global environment turn sour, but we will still need to see a move below the $0.7150 lows of last week to be sure the sellers are in control.
Buyers can restore the bullish outlook with a move above $0.7254, which would put the price on track to hit the 100-day SMA at $0.7355.
USD/CAD looks to move higher
The pair has refused to go lower in recent sessions, and so it looks like US dollar strength may begin to materialise soon, pushing the pair back towards C$1.32, the high from late May.
A move above here targets the 200-day SMA at C$1.3354, while bears will need a firm daily close below C$1.30 to reignite the move to the downside.