Another green day was closed in Wall Street as S&P 500 is close to break-through the resistance of 1300 points. Dow-Jones has already broke-through an important resistance in the daily chart at 12,300 points and it is heading to 12,800.
GBP/USD
The pound has been moving in a bearish pattern in the recent six weeks. Each time it touches the resistance of the downtrend, it falls downwards to 1.535-1.54. In addition, each high that it sets when it reaches the resistance is lower than the previous one. The outcome is the bearish pattern of "lower-highs" which attracts many short positions players to the market.
However, there might be a signal that indicate that the GBP is about to make an aggressive correction. This signal is the fact that last week's low is higher than the previous one, and that is the first signal you look for when you try to estimate whether a bearish session is over. Stochastic low levels are also supporting the estimation that the GBP is about to correct, and if it does, it might jump to the resistance of the downtrend again to 1.565.
Nevertheless, the US stock market might correct down any day, and since the USD has a negative correlation with the stocks, it might get stronger against the GBP and the pair might slide under 1.53.
USD/CAD
The pair is about to reach the point in which a winner will be determined in the battle between the buyers and the sellers. The current pattern is an accurate triangle, which its pivot level is around 1.02. Eventually, the pressure from below of the buyers will meet the pressure from above of the sellers around the pivot level, and the price will either break-up or break-down one of the triangle's edges. A break-up might launch the price to 1.045-1.05, and a break-down might slide it to 1.0.
CAD/JPY
The JPY is showing signs that it is about to break-down the support of 76.5 against the USD, and this might cause a stronger bullish movement of the Yen towards 75.5. Because of the fact that both CAD and JPY are strengthening against the USD these days, the pair CAD/JPY has been stamping since the beginning of December between 75.0 and 76.5. The pair is traded around the lower boundary of this channel and if it keeps the current pattern, it might rise to 76.5. A break-down here will indicate that the JPY is strengthening and the price might fall to 73.0-73.5.
Risk Disclosure
Trading and the execution of transactions in currencies, commodities,CFD indexes and other financial products with or without using high financial leverage, is speculative trading of high risk and may cause substantial gain or loss proportional to the size of the collateral, up to the total loss of the collateral sum in a very short period. The fluctuation of the prices and rates in the currency markets, commodities, CFD ,indexes and other financial derivatives are often volatile and there is no accurate forecasting as per the size of the change, its direction and the time frame in which it occurs.You must consider carefully and seriously if this type of financial activity fits your needs, your financial resources and personal circumstances. Since the risk of losing some of the invested funds or all the funds in a relative short period is high; it is recommended that you use for that purpose funds which you designated for speculative financial transactions of high risk.
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