The following are the intraday outlooks for EUR/USD, EUR/JPY, and USD/CAD as provided by the technical strategy team at SEB Group.
EUR/USD: Scrutinizing the 1.0916 support. The pair continued to drift south yesterday and today we’ve so far been down testing the 1.0916 support, in fact prices for a short while fell a couple of points below before rebounding. Hourly wave patterns however arguing for a possible bounce back to the 1.0970-area before making a real attempt below 1.0916.
EUR/JPY: Drifting lower. Slowly, slowly the pair is drifting lower trying to make way below the mid body point of last Friday’s rising benchmark candle. We still believe that the moving average bands will continue to cap and that the sellers will succeeding in pushing prices lower for yet another test of the key support zone. In fact the past months price action might very well be seen as a head and shoulders top formation, in this case as a downside continuation pattern.
USD/CAD: Small pause before higher. After yesterday’s break and close above the 1.2800/35 resistance it is likely that the market will push prices up to a marginally new high and then a minor correction will take place. The break will however, after a short pause, lead to more buying and a move next up to the 2008/2009 high area, 1.2990-1.3066.
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