Hello, fellow traders,
There are no any specific events to refer to on Monday. Market situation is currently influenced by the previously mentioned factors. Strong movements are expected in the second half of the week, when major events are supposed to take place.
The euro has failed to perform another testing of the resistance at 1.1100, moreover, in the second half of the day the EURUSD pair is moving towards 1.1000. Against the background of Friday's positive statistics on US retail sales, the European economy looks rather weak.
During the last weekend, EU officials have strongly recommended to the UK to clearly indicate its position regarding the Irish border. Despite the fact that Boris Johnson was required by law to find a compromise, he doesn't seem eager to do so or agree to any concessions, which makes the situation even worse.
As a result, the GBPUSD pair has tested resistance at 1.2500, but failed to break it out. There was no dramatic drop, yet, it proves that the pound is very sensitive to any rumors related to Brexit.
USDCAD - priority is given to short positions
We expect the Canadian dollar to recover in pair with the American dollar, but the scenario implying breakout of maximum 1.3838 is unlikely to be executed. To start trading, one needs to wait for the chart to enter the zone 1.331-1.3382, and a reversal pattern to be formed within it. This can be a standard M-shape pattern, or a trading zone accompanied by a breakout and consolidation of the chart under its lower border.
Target for short positions is the support at 1.3181. When entering the market, place stop beyond the local maximum.
Expecting the Canadian dollar to strengthen in pair with the franc
The CADCHF pair is located halfway between the support zone 0.7376-0.7413 and the resistance 0.7525-0.7563. We expect the downward movement to continue, and will consider opening long positions from the support area.
We'll start trading as soon as one of the reversal construction is formed within the range 0.7376-0.7413. After the signal is confirmed, one can enter the market with the target located at 0.7525.
EURCAD - waiting for the bearish reversal pattern to be formed
At the beginning of the week, the euro is losing ground in pair with the Canadian dollar, but the growth potential still remains valid. The chart is located almost in the middle, between the support 1.4433-1.4518 and the resistance 1.4773-1.4858.
We expect the EURCAD pair to grow, and the chart - to enter the resistance zone 1.4773-1.4858, here we'll be waiting for the entry point for sales to be formed. Target for short positions is the level of 1.4518.
EURNZD - expecting a reversal to take place within the resistance zone
Entry point for sales can be formed within the range of 1.7455-1.7569. In case a reversal pattern is formed, one can open trades for sales.
Following the reversal, movement towards the support area 1.7000-1.7115 is expected. Take profit can be placed at around 1.7115.
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