EURUSD traded (briefly) higher Monday and pierced initial resistance at 1.0779, the Jun 2 high. Price has since pulled back. A clear breach of 1.0790 would improve short-term conditions for bulls and allow for a stronger correction. This would expose resistance at the 50-day EMA, at 1.0814, and a clear break of this average would also strengthen a bullish theme. A reversal lower would refocus attention on 1.0635, the May 31 and bear trigger.
Find more articles and bullets on these widgets:
A strong rally in USDCAD extended Friday, tilting the pair to a new weekly high at 1.3532. This has eased recent bearish pressure. The pair has topped the 50-day EMA, at 1.3518. A clear break of this level would be seen as a short-term bullish development and signal scope for a climb towards resistance at 1.3668, the Apr 28 high. Key support lies at 1.3302, the Apr 14 low, where a break is required to reinstate a bearish theme.
AUDUSD’s previous positive tone faded further Friday. This week’s test of key resistance at 0.6806, Apr 14 high, however, reinforces a bullish theme. A clear break of this level would strengthen the case for bulls and open 0.6861, a Fibonacci retracement. On the downside, a continuation lower would threaten the bullish theme and expose 0.6640, the May 4 low. Key support lies at 0.6565, the Mar 10 low.