The following are the intraday outlooks for EUR/USD, USD/CAD, and AUD/USD as provided by the technical strategy team at SEB Group.
EUR/USD: Touching the resistance zone. The break above 1.1290 ended the stalemate and confirmed that a new reaction high was about to be set. With an hourly five wave pattern up from 1.1131 there’s a growing risk of a downside attempt.
USD/CAD: Another downside failure. Again the pair fell down below the prior low point without attracting any follow through selling. Accordingly a second consecutive spring bottom has been created which together with the bullish pre-divergence has the potential of creating a rather impulsive move higher. A break above 1.2007 will probably be enough to get the market into a bullish mode for the day.
AUD/USD: Vulnerable to returning sellers. Problems holding on to gains above 0.8066 (the 2010 low and January sell trigger) together with a bearish predivergence makes the pair very cautious to a sell off. Even the hourly wave pattern, with a series of 1-2’s, warns of an increasing downside pressure. Other crosses such as AUDJPY and EURJPY are also warning of OZ weakness.
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