Article originally published on innerfx.com and republished here with permission
Mix a little foolishness with your prudence: It’s good to be silly at the right moment. ~ Horace
Good morning. The euro continues to lose ground as all recent rallies have been sold. However, support around 1.3430 is still valid but the pair certainly feels quite heavy, so it seems that it’s only a matter of time until it breaks lower. Some of important events of today’s FX Calendar are the US Initial Jobless Claims and Core Durable Goods Orders
Notable resistance is formed around 1.3650 but it seems quite hard to reach such levels. Selling into strength remains the best bet for now
I’m bullish on USDCAD since it was testing 1.0230/50 and now that the breakout is very clear, it’s time to expect next target to be reached – at 1.0550 or higher. Buying dips if price pulls back is a plan to consider.
I guess that every fibonacci fan is long at these levels since 3 days ago but it doesn’t look good at all. As seen below – the 50% test was a better (temporary) reversal point than current test of 62%, so far. One possible scenario is to sell on the break lower, below fib support.
It seems there more downside for GBP against CHF, and next support region is formed by the median retracement of the entire up leg – as seen below.
Risk-off trade continues, hence AUDJPY is trading lower – breaking below support formed by the 62% retracement. More downside is expected, even if price pulls back to test 76.50 first.
Current recovery is probably corrective so it might be a good idea to consider selling opportunities while price doesn’t return in the range above 33