Dollar bears received ample encouragement during trading on Wednesday with the USDCAD plunging to fresh weekly lows at 1.2945 following the dovish FOMC statement which renewed concerns over the health of the US economy. The USDCAD has declined over 400 pips this week and with expectations elevated around the possibility that oil prices may have found a bottom, this pair may be set for a very steep depreciation in March. From a technical standpoint, the candlesticks are trading below both the 20 and 50 SMA while the MACD trades deep into the downside. Previous support around 1.3050 may transform into a dynamic resistance which could encourage a further decline towards 1.290 and potentially lower.
Sterling weakness continues to be the engine which has provided the force for the GBPAUD to descend to levels not seen since 2014 below 1.87. This pair is heavily bearish and the heightened concerns over the implication of a Brexit should haunt investor attraction towards the currency consequently providing an opportunity for bears to attack prices further. From a technical standpoint, there have been consistently lower lows and lower highs while the MACD trades to the downside. Prices are trading below the daily 20 SMA and a daily close below 1.88 should open a path towards 1.865 and potentially lower. Bears remain in control as long as the 1.9250 resistance defends.
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.
This pair is heavily bearish on the daily timeframe and this downside momentum may send price towards 2.8200. Prices are trading below the daily 20 SMA while the MACD has just recently crossed to the downside. The current support at 2.900 has become a dynamic resistance which may invite a further decline towards 2.8200.
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