Fairly slow day in the market with the exception of the Canadian Dollar which completely fell through the floor. As such I’m highlighting one CAD pair that might give us an opportunity going into next week as well as updates on two pairs that were highlighted yesterday.
First off is EURGBP which continues to be one of the better performing pairs in the last couple months. Time to see if we can squeeze one or two more short trades out of this pair before a possible rebound.
Yesterday we looked at the bearish pin bar that occurred after the market found resistance at .7967. I mentioned that the 50% area at .7950 might be a good place to look for a short entry as it should provide some resistance. Today’s high was .7952.
We might see more sideways price action to start next week before a possible move toward the previous low at .7915. Beyond that is the next key support level at .7870. Of course a breach of the pin bar high would invalidate the setup.
Next update is GBPCHF. The pair also formed an inside bar today coming off yesterday’s bullish close above key support.
There isn’t much scheduled event risk for the Pound early next week so we may see two or three more days of sideways movement before the market decides to move. The intersection of horizontal support and trend line support at 1.526 should give us a nice area to look for bullish price action to join the rally next week.
As previously mentioned, the CAD pairs saw a lot of action today and EURCAD was no exception. The pair broke through resistance today at 1.4546.
From here we can look for bullish price action at this level should the market retrace next week. This pair also recently found trend line support from 2012 (see last chart).
EURCAD weekly chart.
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