In Swissquote’s Monday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/CAD and EUR/USD. To view and download the entire report, click here (PDF).
USD/CAD: Buying interest visible near 1.0809
• USD/CAD is moving within a horizontal range defined by the key support area between 1.0809
(50% retracement) and 1.0797 and the key resistance at 1.0998. The recent large daily lower shadows confirm a strong buying interest near the low of this range. An hourly resistance lies at 1.0943.
• 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.
EUR/USD: Weak bounce thus far
• EUR/USD remains weak as can be seen by Friday’s weak bounce. Monitor the recent low at 1.2920. Hourly resistances for a short-term bounce can be found at 1.3000 (psychological threshold) and 1.3110 (02/09/2014 high).
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014.
The break of the key support at 1.3105 (06/09/2013 low) opens the way for a decline towards the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low). A key resistance lies at 1.3297 (22/08/2014 high).
