EUR/USD tests support as new resistance
EUR/USD has seen a strong move lower following the ECB event on Thursday, with price now having broken out of a triangle formation that has been in play since March 2015.
The grind higher over the past two days has brought price back to both trendline resistance and the support level from the previous consolidation ($1.1072).
As such, I am bearish as long as the $1.1072 level resistance holds up. The first support level in view is clearly defined at the notable $1.1 level, followed by $1.0842.
USD/CAD bounces off moving average following H&S
There's a nice pattern in play here for USD/CAD, with an inverse head and shoulders followed up by a retest of the right shoulder (C$1.3047) and gradual move higher from there.
The 20-period SMA (four-hour) has been providing support for each leg higher and we are clearly within the middle of such a move right now.
As such, I remain bullish and am watching out for the C$1.32 level as the next resistance. My bullish bias would only be negated should price fall back below C$1.312, especially if it was preceded by a failure to break back above C$1.32.
But, until then, I remain bullish and am looking towards C$1.32 and C$1.327 resistance levels.
GBP/AUD turning lower once more
GBP/AUD has turned lower once more this morning, providing more confidence that the pair is set to see a strong move lower over the coming week.
The selloff seen through late September to early October brought about a substantial bounce throughout the past two weeks. With price initially seeing the break below $2.1286 and the 20-period SMA, we have since seen both treated as ongoing resistance points.
The 20-period SMA in particular is providing very reliable resistance, just as it did support on the way up. Given that the dominant trend since this market topped off in August has been one of selling, I expect to see a strong move lower for this market over the coming weeks.
Simply watch out for continued creation of new lows and lower highs. As such, I expect a break back below $2.1093 and towards $2.1 in the coming days, where $2.08 is attainable in the coming weeks.
Be aware of the UK GDP figure released this morning for fundamental risks.