The trend needle in GBPUSD still points south despite the most recent gains, which appear to be a correction. A bearish sequence of lower lows and lower highs highlight a downtrend. The trend is oversold and short-term gains are allowing this condition to unwind. Key support at 1.1412, Mar 20 2020 low, has been pierced. This is a major level and a clear break would strengthen bearish conditions. Firm resistance is at 1.1705, the 20-day EMA.
Find more articles and bullets on these widgets:
USDCAD extended losses Thursday, printing a new multi-month low in the process. This weakness marks an extension of the current bear leg. Support at 1.2767, the Aug 1 low, has been cleared and the move lower paves the way for a continuation lower. Attention is on a clean close below 1.2744, the 200-dma and 1.2685, a Fibonacci retracement. On the upside, a breach of 1.2985, the Aug 5 high is required to reinstate a bullish theme.
AUDUSD rallied further Thursday, extending this week’s bull cycle. The break of 0.7047, Aug 1 high, confirms a resumption of the uptrend that started Jul 14 and sets the scene for a continuation higher. The break has also established a bullish price sequence of higher highs and higher lows. The focus is on a climb toward 0.7141, a Fibonacci retracement. Support to watch is at 0.6870, Aug 5 low.
Bonds finished stronger, near late highs on a quiet second half w/ TYU2 just over 1M well after the bell compared to 815k ahead midday, yield curves unwinding a portion of this week's CPI/PPI induced steepening.