EURUSD buyers failed to close above the 1.1340/80 confluence of resistance that I highlighted last week. After several retests, the resistance held and a sell off was initiated on Thursday. Friday failed to close below 1.1230.
1.1230 will serve as support going into the week. There is also an ascending channel which held from 1.1340 if the channel is true then we might see EURUSD turn lower towards 1.1150 and 1.0990 in the coming days.
If we see EURUSD move up and take out the confluence of resistance at 1.1340/80, it will open the door to 1.150 and 1.1720 the multiyear wedge top.
EURUSD daily.
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GBPUSD bulls were rejected at 1.276, with a pin bar that brought the pair down to the critical support levels of channel bottom, trend line and horizontal level at 1.2450. Future movement comes down to if sellers will break this confluence of support or not.
Given the 20.4% shrink in the UK economy it is more likely that we will see GBP weaken further. Monday will be a deciding day on how to play the cable.
GBPUSD daily
Last week forecast on EURJPY centered out the channel breakout, a pull back and the possibility of a false break.
The aggressive move back into the channel signals weakness, notice on Friday buyers tried to recover control above the resistance but closed below it, if the resistance zone 121.035 holds that will keep EURJPY vulnerable.
On the way down key support levels include 119.75, 118.530 and 116.00. On the other hand if the pair closes above 121.035 that will keep the buyers in control and higher levels exposed.
EURJPY daily
EURJPY weekly
The USDCAD is another pair that seems to have confirmed a false break. The dollar cad broke out of a short term descending channel on the 1st of June. This type of break often times turns to be traps (descending channel breaking out to the down side)
Fridays candle closed 17 pips clear of support 1.3560 notice how Thursday closed right back into the channel through the confluence of resistance.
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This kind of move leaves 1.3860 followed by channel resistance exposed as long as the price remains above 1.3560.
USDCAD daily
Written by:
Chijioke Maduakor
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