In Swissquote’s Thursday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and USD/CAD. To view and download the entire report, click here.
• GBP/USD has breached the strong support at 1.6693, but has thus far failed push lower to 1.6665 (200 day moving average). However, the technical structure is negative as long as prices remain below the resistance at 1.6700. A break of the resistance at 1.6845 (13/08/2014 high) is needed to suggest exhaustion in short term selling pressures.
• In the longer term, the break of the major resistance at 1.7043 (05/08/2009 high) calls for further strength. Resistances can be found at 1.7332 (see the 50% retracement of the 2008 decline) and 1.7447 (11/09/2008 low). A key support stands at 1.6693 (29/05/2014 low, see also the 200 day moving average).
USD/CAD: Drifting lower
• USD/CAD is further fading near the key resistance at 1.0961 (see also the 50% retracement). Near term supports stand at 1.0905 (04/08/2014 low) and 1.0845 (29/07/2014 low). Resistance can be located at 1.1053.
• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. However, a break of the support area implied by the long-term rising trendline and 1.0559 (29/11/2013 low) would invalidate this long-term bullish configuration.