In my post of 28th May I suggested that the Canadian Dollar was approaching a key turning point as it was heavily overbought as displayed on our daily currency strength indicator on the left. Since then, the currency has indeed been selling off and for evidence of this we need to look no further than the CAD/USD June futures where this price action is clearly reflected.
EURUSD moved sideways in a narrow range between 1.3586 and 1.3668.
The USDJPY pair initially fell during the session on Monday, but as you can see ended up bouncing enough to form a hammer by the end of the day. This hammer of course suggests that the markets going to go higher, and as a result we believe that the move higher should continue to the 103 level at the very least, as it is the next major resistance area.
The USDJPY pair broke out to the upside during the session on Monday, essentially cracking the top of a couple of hammers from last week. We are testing the 102.50 level at the moment, and thereby we think we are getting ready to head to the 103 handle.
AUDUSD’s bounce from 0.9208 extended to as high as 0.9329, the subsequent fall indicate that the bounce had completed,
EURUSD is currently finding support at the bottom of the rising channel on the daily time frame while stochastic is indicating deeply oversold conditions.
The EURUSD pair fell during the session on Wednesday, breaking below the 1.36 level towards the end of the day.
The USDJPY pair initially fell during the session on Wednesday, but as we have seen for the past couple of days, buyer stepped in and push the market back up.
The EURUSD (FXE, quote) pair fell during most of the session on Tuesday, but found the 1.36 level supportive yet again. Because of this, it appears that the market is ready to grind sideways, as this area although supportive, isn’t necessarily a major support area.
The AUDUSD (FXA, quote) pair went back and forth during the session on Tuesday, bouncing off of the 0.9250 level yet again. This is an area that has been extraordinarily supportive, and as a result it doesn’t surprise us that we continue to hang about.
