USDCAD update and AUDUSD trade

Yesterday I wrote some analysis on the USDCAD suggesting levels where we could be looking to sell. It seems that it played out quite well. USDCAD came very close to the 38.2 fib but didn't quite reach it as it touched the 100sma and sold off from there. However, I didn't expect such a fast moving sell off so unfortunately I missed out on that trade as I was away from my computer at the time.

USDCAD also managed to penetrate the previous support quite strongly, making a new low. This suggests that the downtrend should continue.

Although I missed out on the USDCAD trade, I was in an AUDUSD trade from before. AUDUSD had been in a downtrend previously but then broke out strongly above resistance, hinting that the trend may be changing. I entered a bit too early so I had to hang in there for a while as it moved against me.

However, my trade is now positive and moving in the direction that I have anticipated. It is now testing resistance and we will have to wait and see whether it will make a new high or not.

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USDCAD sell soon?

So recently the USDCAD uptrend took a nasty fall and fell over 500 pips. Most likely for the short-term, this downtrend will continue. Especially as oil has broken above key resistance levels as well. This should assist in pushing USDCAD lower.

USDCAD is now currently in retracement mode and reaching potential areas to short. As in the diagram below, the first level to look at is the 38.2 fib level. If it goes through there, then its the 50 level which is also in line with the 200 SMA which should provide some strong resistance.

EURUSD Bearish breakout

EURUSD has broken out the bottom of the congestion pattern signalling that most likely there will be more selling to come. If price continues to fall then next support will be around 1.0635 and then 1.0518

EURUSD UPDATE 04/01/16

Happy New Year everyone! Hope 2015 was profitable for you.

Current situation in EURUSD is that it is stuck in a sideways consolidation pattern. This is normal and expected after such a huge upmove which caught many traders offguard. Bulls and bears are fighting for control.

 The support at the bottom of the pattern was tested recently and bulls defended strongly. Target will now be at the top of the pattern. This is what it looked like on a smaller timeframe: