Forex Video Briefing 6/16
Hi I am Fang Yang, your chief technical strategist at ForexMinute.com. It is June 16, 2014. In today’s forex video briefing, I will be looking at developments in the EUR/USD, GBP/USD, AUD/JPY, and USD/CAD.
EUR/USD: After falling from 1.3670 last week, EUR/USD found support at 1.3512 and has formed a consolidation range with resistance at 1.3612. A break below 1.3510 should put pressure on the 1.35 handle down to the 1.3476, low on the year. However, a break above 1.3575 would form a price bottom, and expose 1.36, and then last week’s highs around 1.3670.
GBP/USD: Cable has been strong. It started this week pushing through 1.70, making a new high on the year at 1.7010 so far as we get into the 6_16 US Session. At this point, the pair is poised to test the 2009 high round 1.7040. A break below 1.6935 with the 1H RSI falling below 40, could usher in some short term bearish correction if not a reversal. In this scenario, the 1.69 handle, and then the 1.6840-1.6860 area could be monitored for support within a market that is still poised to test the multi-year highs around 1.7040.
AUD/JPY: The aussie-yen is trading just under the 2014 highs around 96.50. There is a recent consolidation, between 96.15 and 95.33. A break below 95.30 could signal a bearish swing with the 94.50 level as near term budget. A break above 96.50 would be a major bullish continuation signal and expose the 100 psychological level, which is also around some previous support resistance factors.
USD/CAD: The USD/CAD formed a price bottom and broke above a falling trendline resistance to start the 6_16 US session. However, it is retreating and testing the price bottom. Ability for traders to hold USD/CAD north of 1.0860 would be a good sign that the price bottom is being respected, and a bullish outlook could develop. Otherwise, the pressure remains toward the 1.0840 low in the near term, with a bias to break lower toward the 1.0814-1.0822 lows.