Up 1.04% on the day, the USD/CAD aggressively advanced northbound Tuesday on the back of a healthy USD across the board, along with a collapse observed in crude oil prices and comments from BoC’s Wilkins. Wilkins announced the central bank will review monetary policy framework in the run up to late 2021, indicating it is open to major changes.
In terms of weekly...
In wake of the RBA minutes emphasizing an on-hold policy stance, along with resurgent USD demand, the commodity currency tumbled lower in lock-step with declining stocks Tuesday. Extending losses from recent 0.73+ peaks, the H4 candles captured October’s opening level at 0.7229 and are currently seen hovering just north of the 0.72 handle.
0.72 is likely an...
EURCHF is approaching its support at 1.1357 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing low support) where it could potentially bounce to its resistance at 1.1394 (50% Fibonacci retracement, horizontal swing high resistance). Stochastic (55, 5, 3) is approaching its support at 4.7% where a corresponding bounce could occur.
GBPJPY is approaching its support at 144.30 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal overlap support) where price could potentially bounce up to its resistance at 145.93 (38.2% Fibonacci retracement, horizontal pullback resistance). Stochastic (89, 5, 3) is testing its support at 2.7% where a corresponding bounce could occur.
EURCAD reversed off its resistance at 1.5113 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance) where it could potentially drop further to its support at 1.5017 (50% Fibonacci retracement, horizontal swing low support). Stochastic (55, 5, 3) reversed off its resistance at 96% where a corresponding drop could occur.
EURJPY bounced off its support at 127.47 (76.4% Fibonacci retracement, horizontal swing low support) where it could potentially rise further to its resistance at 129.95 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal swing high resistance). Stochastic (89, 5, 3) bounced off its support at 3.7% where a corresponding rise could occur.
EURCAD reversed off its resistance at 1.5016 (61.8% Fibonacci extension x2, 78.6% Fibonacci retracement, horizontal swing high resistance) where it could potentially drop further to its support at 1.4919 (50% Fibonacci retracement, horizontal swing low support). Stochastic (89, 5, 3) reversed off its resistance at 89% where a corresponding drop could occur.
EURUSD reversed off its resistance at 1.1418 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal swing high resistance) where it could potentially drop further to its support at 1.1353 (38.2% Fibonacci retracement, horizontal overlap support). Stochastic (89, 5, 3) reversed off its resistance at 96% where a corresponding drop could occur.
CADCHF is approaching its support at 0.7588 (100% & 61.8% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing low support) where it could potentially bounce to its resistance at 0.7620 (50% Fibonacci retracement, horizontal overlap resistance). Stochastic (55, 5, 3) is approaching its support at 7.1% where a corresponding bounce could occur.
XAUUSD is approaching its resistance at 1234.2 (61.8% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing high resistance) where it could potentially reverse down to its support at 1215.8 (50% Fibonacci retracement, horizontal pullback support). Stochastic (89, 5, 3) is approaching its resistance at 97% where a corresponding reversal could occur.
AUD/USD:
Weekly Gain/Loss: +1.54%
Weekly Close: 0.7330
Weekly perspective:
The Australian dollar rallied strongly against its US counterpart last week, consequently shipping price action above its 2016 yearly opening level at 0.7282 and settling just south of notable resistance priced in at 0.7371. This resistance has served as a critical level in this market...
GBPJPY is approaching its support at 142.53 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing low support) where it could potentially bounce to its resistance at 146.23 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing high resistance). Stochastic (89, 5, 3) is approaching its support at 1.7% where a corresponding...
AUDJPY is approaching its resistance at 82.23 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal swing high resistance) where it could potentially reverse down to its support at 82.23 (50% Fibonacci retracement, horizontal swing low support). Stochastic (55, 5, 3) is approaching its resistance at 98% where a corresponding reversal could occur.
USDCAD is approaching its support at 1.3142 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap support) where it could potentially bounce to its resistance at 1.3208 (50% Fibonacci retracement, horizontal overlap support). Stochastic (55, 5, 3) is approaching its support at 4.9% where a corresponding bounce could occur.
GBPUSD bounced nicely off its support at 1.2705 (100% Fibonacci extension, horizontal swing low support) where it could potentially bounce to its resistance at 1.2839 (38.2% Fibonacci retracement, horizontal pullback resistance). Stochastic (55, 5, 3) is bounced off its support at 2.7% where a corresponding rise could occur.
AUD/USD:
Going into early Asian hours Thursday, the Australian dollar derived fresh impetus on the back of better-than-expected employment figures. Despite this, the remainder of the day witnessed the AUD/USD enter choppy trade just south of its 0.73 handle.
0.73 is a key level, according to our technical studies. 0.73 is given extra credibility due to it...
XAUUSD is approaching its resistance at 1212.28 (61.8% Fibonacci extension, 38.2% Fibonacci retracement x3, horizontal overlap resistance) where it could potentially reverse down to its support at 1198.37 (76.4% Fibonacci retracement, horizontal swing low support). Stochastic (34 5, 3) is approaching its resistance at 91% where a corresponding reversal could occur.
AUDUSD is approaching its resistance at 0.7295 (100% Fibonacci extension, 23.6% Fibonacci retracement, horizontal swing high resistance) where it could potentially reverse down to its support at 0.7198 (76.4% Fibonacci retracement, horizontal swing low support). Stochastic (55 5, 3) is approaching its resistance at 96% where a corresponding reversal could occur.
