EUR/USD could drop to lows of 2015
After yesterday’s savage sell-off, the pair is bouncing having hit $1.0714. However, buyers will need to get the price back above $1.0850 - the lows of late October - to really indicate that bullish momentum is back.
Otherwise, it may be that this is another chance to sell into strength, with an initial target of $1.07, and then down to $1.0525 and the lows of 2015.
USD/JPY could target ¥112
Yesterday’s big move higher took the pair above the crucial ¥107.50 area. With the price still overbought some bullish momentum may fade, but it would need a close back below ¥107.50 to indicate a pullback is in the offing.
If buyers can keep the price moving higher then the next area to watch is ¥112.
USD/CAD eyes support around C$1.3264
Having dropped back today, the pair is giving latecomers a chance to hop on board the rising trend that has prevailed since September.
Further declines might see the price move back towards support around C$1.3264.