The US stock markets opened the first day of the trading-week with strong risings but the expected realizations pulled the stocks down. Many investors and analysts are looking for an aggressive correction, which might start if the main indices slide under yesterday's low. However, this is the results season, which means that surprising reports can bit any technical analysis that says that the markets are overbought, and we might see the stocks keep risings.
USD/CAD
The pair has changed its direction several times in the past 3 months. Unlike the other currencies, the CAD stood up against the strong momentum of the USD and it managed to correct after each rally of the USD. The simultaneous pressure of both buyers and sellers created an accurate triangle pattern in the daily chart, which looks like the pair has decided to break it. The break-down of the lower edge of the triangle is not completed yet, and the USD might take it back into the triangle's zone. However, the pair did broke the important support of 1.01 and a break-down of the psychological number 1.0 might pull the price down to the 200 SMA at 0.99-0.995.
EUR/GBP
The EUR/USD successfully broke the channel and reached the first target we set at 1.30. The next resistance for the EUR would be at 1.31. The "short-squeeze" in the GBP/USD continues powerfully and the pair crossed the target we set for this correction, at 1.55.
The strengthening of both EUR and GBP caused the pair EUR/GBP to be more volatile than the average, but it looks like the Euro has more to correct against the GBP. The current resistance is at 0.837 and a strong break-up might take the price up to 0.85. Pay attention to stochastic high levels, which indicate that the pair is overbought and might resume declining again from the current levels.
GBP/CHF
We analyzed the Swiss Franc yesterday and estimated that if it breaks-down the support at 0.93 against the USD, it might start a strengthening session against the USD. The CHF did break that support and might get stronger against the other major currencies. The GBP continues its correction against the USD as well, so it could be harder for the CHF to rise against the pound. The daily chart of the GBP/CHF looks similar to the USD/CHF so this might indicate the CHF will overcome the strengthening of the GBP if it rises against the USD.
The pair is now dealing with the support of the former break-out level at 1.445 and it might slide to 1.42 if it successfully breaks-down this support.
USD/CAD
The pair has changed its direction several times in the past 3 months. Unlike the other currencies, the CAD stood up against the strong momentum of the USD and it managed to correct after each rally of the USD. The simultaneous pressure of both buyers and sellers created an accurate triangle pattern in the daily chart, which looks like the pair has decided to break it. The break-down of the lower edge of the triangle is not completed yet, and the USD might take it back into the triangle's zone. However, the pair did broke the important support of 1.01 and a break-down of the psychological number 1.0 might pull the price down to the 200 SMA at 0.99-0.995.
The EUR/USD successfully broke the channel and reached the first target we set at 1.30. The next resistance for the EUR would be at 1.31. The "short-squeeze" in the GBP/USD continues powerfully and the pair crossed the target we set for this correction, at 1.55.
The strengthening of both EUR and GBP caused the pair EUR/GBP to be more volatile than the average, but it looks like the Euro has more to correct against the GBP. The current resistance is at 0.837 and a strong break-up might take the price up to 0.85. Pay attention to stochastic high levels, which indicate that the pair is overbought and might resume declining again from the current levels.
We analyzed the Swiss Franc yesterday and estimated that if it breaks-down the support at 0.93 against the USD, it might start a strengthening session against the USD. The CHF did break that support and might get stronger against the other major currencies. The GBP continues its correction against the USD as well, so it could be harder for the CHF to rise against the pound. The daily chart of the GBP/CHF looks similar to the USD/CHF so this might indicate the CHF will overcome the strengthening of the GBP if it rises against the USD.
The pair is now dealing with the support of the former break-out level at 1.445 and it might slide to 1.42 if it successfully breaks-down this support.
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