The mounting expectations around the European Central Bank unleashing further stimulus measures in the upcoming press conference on Thursday has left the EURUSD noticeably depressed with strong resistance based at 1.1050. This pair is turning increasingly bearish on the daily timeframe and may be set to decline towards 1.0800 by the end of the week if the central bank follows its pledge to unleash aggressive measures in a bid to boosting growth in the Eurozone. From a technical standpoint, the candlesticks are trading below both the 20 and 50 SMA while the MACD trades deep into the downside. An intraday break below 1.093 may encourage bearish investors to drag prices towards 1.080 and potentially lower. If prices manage to trade back above 1.1100 then this signals bearish weakness and invalidates the current daily bearish outlook for the EURUSD.
This pair has surged over 300 pips in the months of March and with consistent higher highs and higher lowers being created on the daily timeframe prices are firmly bullish. A combination of USD weakness and AUD appreciation from the rise in Gold prices have offered a foundation for bulls to install a solid round of buying momentum with more upside expected. From a technical standpoint, prices are trading above bot the 20 and 50 SMA while the MACD trades to the upside. A solid breakout and daily close above 0.7500 should encourage buyers to send the AUDUSD towards 0.7800. A bearish move back below 0.7300 signals bullish weakness and invalidates this daily bullish outlook.
The USDCAD has followed a negative trajectory for an extended period with prices sinking over 1400 pips from the 1.469 January 2016 top. With consistently lower lows and lower highs being created for an extended period the pair is bearish and a breakdown below 1.3250 should encourage a steeper decline towards 1.3050. The candlesticks are trading below the daily 20 SMA and the MACD has crossed to the downside, bears remain safe as long as the 1.3600 resistance defends.
This pair is heavily bearish on the daily timeframe and prices may decline towards 1.4450. Prices are trading below both the 20 and 50 SMA while the MACD also shows signs of further downside moves. As long as the new higher low of 1.4900 defends, bearish investors may be offered an opportunity to send the EURAUD towards 1.4450 and potentially lower.
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