Technical News Breaks
Special Focus: USDCAD & EURGBP
- USDCAD: Sees Continued Downside Weakness
- EURGBP: Breaks To A 14-Month High
USDCAD saw the clearance of the 1.0340 support on Friday, a level which marks its year-today low as well as its lowest price since 1978.This weakness has pushed the pair to a new year low of 1.0276 at the end of the week, its lowest price in 30 years. With the present downside pressure triggered by a head and shoulders neckline break and the losses of the 1.0462 level, its Aug 08'07 and the 1.0340 level, its late July'07 low, further downside targets are likely towards the 1.0197 levels, its 1.272 Fib Ext.,its H & S breakdown price objective at 1.0075 and the 1.0012 zone, its 1.618 Fib Ext. with the former levels (1.0340 & 1.0461) expected to reverse roles and provide resistance on any weakness at the present levels.
Figure 1: USDCAD
EURGBP pushed through key technical resistance levels (0.6825, 0.6856 & 0.6867) to register a 14-month high of 0.6918 and close the week at 0.6911 on Friday. With this band of resistance levels invalidated, challenges on higher prices should push the cross towards its July'06 high at 0.6960 and then the 0.7019 level, which is the location of its April'05 high. Downside targets are located at its Mar 18'07/May 16'07 highs at 0.6867/56 accompanied by its falling trendline breakout point/Aug 20'07 high at 0.6834/25 ahead of its .50 Ret(0.6678- 0.6918 rally) at 0.6798.Momentum indicators on the weekly chart remains in alignment with this EURGBP's medium term upside view.
Figure 2: EURGBP