The heightened expectations that oil prices have found a bottom combined with the visible upswings in the oil markets have empowered the Canadian Dollar which consequently sent the USDCAD spiralling downwards. This pair has made consistently lower lows and lower highs while the MACD trades deep into the downside. Dollar weakness simply fuels the bearish momentum further and a sharp breakdown below 1.3200 may encourage a decline towards 1.3050. From a technical standpoint, the candlesticks are trading below both the 20 and 50 SMA with previous support at 1.3200 acting as a potential resistance for a greater decline towards 1.3050. A bullish move above 1.3450 signals bearish weakness and invalidates this daily bearish outlook.
This pair continues to search for direction and trades in a very wide range with support at 111.00 and resistance at 114.50. In the bigger picture, the USDJPY looks quite bearish and a solid breakdown below 111.0 should encourage a steeper decline towards 110.00. From a technical standpoint, the candlesticks are trading below both the 20 and 50 SMA while the MACD trades to the downside. As long as the 114.50 resistance is not breached, bears should be encouraged to pull prices towards 110.00 before the decline towards 110.00.
Sterling vulnerability has been one of the main driving forces which have provided a foundation for the GBPAUD to plunge. The pair remains overwhelmingly bearish and growing uncertainties over the impact of a Brexit to the UK economy should encourage bearish investors to attack the Sterling at any given opportunity. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has crossed to the downside. A breakdown below 1.900 may open a path towards 1.850 and potentially lower. A bullish move back above 1.960 suggests bearish weakness and invalidates this daily bearish outlook.
The USDZAR is technically bearish on the daily timeframe as prices are trading below the daily 20 SMA while the MACD has crossed to the upside. A solid breakdown below 15.00 should encourage bearish investors to send the USDZAR lower towards 14.50. A bullish move back above 15.75 suggests bearish weakness and invalidates this daily bearish outlook.
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