Dollar pull backs are shallow confirming the strength in the Dollar after the weekly reversal I have mentioned in my previous posts regarding the Dollar index. Favorite pair remains USDCAD targeting minimum 1.33.
New lows this morning below 1.1280 and price is approaching the daily Kumo support. Stochastic is oversold. Price is above the Kumo and the upward sloping trend line. Short-term trend remains bearish but bears must be on the look out for a possible reversal.
Is trading above the daily Kumo (cloud) and has turned lower in order to back test the break out. Resistance is at 1.4535. A break above this level will confirm a bullish reversal with target near 1.50. We could see lower levels closer to the Kumo but overall with the stochastic diverging in oversold levels I will prefer waiting for the reversal.
Despite WTI reaching 48.50$ the pull back in USDCAD has been minimal, taking into account their inverse relationship. Trend remains bullish despite the short-term sideways consolidation and my minimum target remains at 1.33.
Price is above the Kumo and breaking above the short-term downward sloping trend line resistance. The next leg up has already started.
Price is breaking above the 109.50 resistance area that continues to be an important obstacle for 110.50 to be reached. Today is the day where we will break towards 110 or get a rejection and reversal towards 108. I prefer the bullish scenario.
AUDUSD – NZDUSD
Both pairs remain in bearish trend and after a rejection at the Kumo they are turning sharply lower.
New lows are expected over the next couple of sessions as the rejection is a strong bearish sign.
Dollar is expected to continue into strength. Have a nice day