FUNDAMENTALS
UK: Despite a small increase in the CPI due to easing lockdown measures, the BofE is unlikely to change its stance. The market will react in consolidation to last week's news in the UK of the uncertainty of a post-Brexit trade deal with the EU, the UK's debt being larger than GDP and the figures casting a recession.
USA: Unemployment figures start to...
USD/CAD reversal pattern suggests taking a short position.
TECHNICAL ANALYSIS: The USD/CAD has formed and a head and shoulders pattern, indicating an imminent trend reversal. This is after the price formed an uptrend last week. Furthermore, the price hovered around the downwards trend line but did not fully breakout - showing a greater confirmation of a...
USD/JPY coming back above medium-term trend.
Following the strong drawdown of the USD/JPY of over 300 pips nearly hitting a long-term support level at 106 is likely to bounce back in the near future. With a positive outlook on unemployment, retail sales, housing starts next week the dollar is likely to pass above the low-lying medium-trend (bottom green line) - as...
GBP/CAD at retracement level.
Following a large drawdown of 160 pips, the GBP/CAD is at the 0.5 Fibonacci retracement level. Previous false breakouts have occurred on the 4th June and 8th June - price action tends to repeat itself so this breakout below the trend channel is likely to be false too. The hourly stochastic is giving an oversold signal, along with the...
