After confirming yesterday’s reversal top and changing the main trend to down, the EUR USD reached the low end of a retracement zone at 1.4012. Watch for a possible technical bounce at this level with 1.4068 a potential rally back to 1.4068
After confirming yesterday’s reversal top and changing the main trend to down, the EUR USD reached the low end of a retracement zone at 1.4012. Watch for a possible technical bounce at this level with 1.4068 a potential rally back to 1.4068.
The GBP USD is trading lower at the midsession. A new secondary lower top has been formed at 1.5982. The current price action suggests that this market may correct back to 1.6283 to 1.6212.
The weakness in the equity markets is fueling a rally in the USD JPY. The strong up move has put this currency pair in a position to take out the last swing top at 95.38. A move through this level will suggest lower equity prices.
After taking out the last swing bottom at 1.0783 and posting a new low for the year at 1.0748, the USD CAD failed to attract new selling pressure. Oversold technical conditions combined with weak equity and crude oil prices are attracting both short-covering and fresh buying at the midsession.
After testing the June low at 1.0590 and re-establishing a higher bottom at 1.0622, the USD CHF is finally showing signs of life. Since early June this currency pair has been holding inside of a range of 1.0590 to 1.0986. This morning this pair crossed a key pivot price at 1.0805 which triggered upside momentum.
Weakness in China’s Shanghai Composite Index overnight along with fresh selling pressure in the U.S. equity markets is encouraging selling in the AUD USD. A decrease in trader appetite for risk could trigger a break to .8019 to .7945 over the short-run.