The EURUSD ventured towards the 1.135 support during trading on Tuesday as a combination of Dollar resurgence and profit taking provided an opportunity for sellers to attack. Regardless of these short-term losses, this pair looks firmly bullish on the daily timeframe and the potential higher low at 1.135 may grant an opportunity for bulls to install another round of buying. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD trades firmly to the upside. A decisive breakout above 1.140 could trigger a rally towards 1.150 and potentially higher. If bears manage to conquer the 1.135 support then this daily bullish outlook becomes invalidated.
The Sterling/Dollar smashed into the 1.440 support as the horrible cocktail of soft UK data, renewed Brexit fears and diminishing investor attraction towards the Sterling, encouraged sellers to send prices lower. This pair is in the process of turning heavily bearish on the daily timeframe and a breakdown below 1.440 could open the gates towards 1.141 and potentially lower. From a technical standpoint, prices are marginally above the daily 20 SMA while the MACD could be in the process of crossing to the downside. Bears could regain further control as long as the 1.450 resistance defends.
The USDCAD surged with ferocity during trading last week with prices spiking towards 1.30 as falling oil prices weakened the Canadian Dollar which consequently encouraged the USDCAD bulls to pounce. This pair has breached above the daily 20 SMA and with the MACD in the process to switching to the upside, the USDCAD could be poised for further inclines. In this scenario, previous resistance at 1.275 could act as a dynamic support that encourages bulls to propel the USDCAD towards 1.320.
Silver experienced a sharp decline during trading this week as slight resurgence in Dollar strength weighed heavily on the commodity. This metal remains bullish and with expectations continuing to fade over the Fed taking any action in Q2, the Dollar may be poised to weaken consequently sending Silver higher. From a technical standpoint, there have been consistently higher highs and higher lows while the MACD also trades to the upside. Previous resistance around $17.00 could become a dynamic support for a sharp move higher towards $18.00.
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