Canadian Dollar

US Dollar / Canadian Dollar

Recent commentary was that “the entire rally from 1.0782 has now been retraced. However, the drop below 1.0782 may be wave Y in a complex W-X-Y corrective decline from 1.3068. Daily RSI has turned up from oversold (which was also divergent with the low). The USDCAD rally has picked up steam and cleared initial resistance at 1.0940. The advance has the characteristics of an impulse and the decline has stalled at the 61.8% of the rally. If the USDCAD is to turn up, then this is a good place for it to do so.” The pair did turn up and price has now cleared 1.1108. A 3rd wave is probably underway from 1.0791. Dips should be bought against that level. 1.0972-1.1027 is a support zone.

US Dollar / Swiss Franc

The USDCHF pattern is the same as the EURUSD pattern (but as the inverse). Wave C within the A-B-C corrective decline from 1.2303 may be truncated and therefore complete. Trading above 1.0939 would confirm the reversal. Near term, price ideally stays above 1.0670.

British Pound / Japanese Yen

After breaking below a support line and testing 156.00, the GBPJPY reversed violently after testing the 61.8% of the decline from 163.15. I wrote last week that “a close look at the rally from 155.96 reveals that the advance is in 3 waves as well (corrective). Favor the downside. A break below 156.00 exposes a Fibonacci confluence at 152.80/153.40.” Former support at 156 is now potential resistance. Rallies should be sold against 160.50. Potential short term support levels are 152.80 and 150.00.