Sentiment towards the Sterling remains firmly bearish and this risk-averse trading environment continues to leave the currency vulnerable to further losses in the near term. The GBPAUD currently follows a negative trajectory on a daily bearish channel while the fading expectations that the BoE will raise UK rates in 2016 have encouraged bearish investors to attack the pair further. Although some erratic candlesticks movements may be observed, prices are still bearish as there have been consistently lower lows and lower highs. The pair trades below the daily 20 SMA while the MACD also digs to the downside. A solid breakdown below 2.02 should encourage a further decline towards 2.00.
Sterling weakness has acted as a driving force which has propelled the EURGBP to fresh weekly highs just below 0.7900. This pair is technically bullish on the daily timeframe and a breakout above 0.7900 may open a path towards 0.8000. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD is deep into the upside. Previous resistance at 0.7700 may act as a dynamic support which should encourage a further incline towards 0.7900 and potentially higher.
This pair is heavily bearish on the daily timeframe as there have been consistently lower lows and lower highs. Prices are trading below both the 20 and 50 SMA while the MACD is also in the negative. Previous support at 82.00 may become a dynamic resistance which should encourage a further decline towards 78.80 and potentially lower.
The violent declines in oil prices which continue to punish the Canadian Dollar has consequently installed the EURCAD bulls with enough momentum to trade towards 1.5950. This pair is bullish on the daily timeframe and a breakout above 1.5950 may invite a further incline towards 1.6300. If prices sink back below 1.5400 then this bullish daily outlook becomes invalidated.
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