EUR/USD breakdown extends, as traders flock to USD
EUR/USD has extended lower following the clear bearish break that came with a move below $1.1574 last week.
That fall out of a consolidation phase led to a move in the direction of the wider bearish trend. Further downside looks likely, with any rebound likely to provide a selling opportunity. We would need a break above $1.1628 to provide a signal that this sell-off could be over.
GBP/USD continues to decline within downtrend
GBP/USD has continued its downtrend, with the creation of lower highs and lower lows providing a clear clue that the short-term trend is expected to persist.
That means a break above $1.2909 would be required to point towards a stronger rebound. However, that would be perceived as a signal of a retracement of the near-term decline from $1.3214, rather than a wider reversal signal.
USD/CAD rallies higher from wedge formation
USD/CAD has managed to extend its wedge breakout, with the initial break providing us with a nice 76.4% retracement before extending higher.
We have not seen the price move into the 61.8% retracement of the $1.3290-$1.2962 decline. Watch for how we respond to this level as a gauge of whether we are going to take a breather here or not. Should the price respect those levels, it would also give us a better idea of whether this a retracement or in fact a reversal of the wider move (bullish).