USD CAD in Position to Rally

The USD CAD is trading better at the midsession. Yesterday this currency pair confirmed the August 4th closing price reversal bottom but was unable to follow-through to the upside.

The USD CAD is trading better at the midsession. Yesterday this currency pair confirmed the August 4th closing price reversal bottom but was unable to follow-through to the upside. Now that this market has survived a test of this week’s low at 1.0630, it appears poised to move higher.

The GBP USD is facing strong selling pressure today because of the surprise news from the Bank of England. Early this morning the BoE announced that it would fund its asset buyback program with an additional $84 billion.

The EUR USD is trading lower at the midsession. Traders are reacting negatively in sympathy with the break in the British Pound and also because the European Central Bank did not deliver the news that they wanted to hear.

The break in the equity markets is leading to less demand for higher yielding assets. This is pressuring both the AUD USD and NZD USD. Although the break has been limited at the midsession, an acceleration of the break in the U.S. stock markets could trigger an even harder break in these higher yielding currencies.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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