USDCAD broke out of a solid technical pattern last week and is currently undergoing a healthy correction; there is an area of support to watch price action to determine if follow-through may unfold in the days ahead. USDJPY has a nice channel structure in place, a test of the lower parallel could make for an interesting spot to watch whether it wants to maintain it or not. Gold is bouncing but at risk of turning down soon from a resistance line.
- USDCAD undergoing constructive pullback after breakout
- USDJPY trading within channel, watch for test of support
- Gold price testing resistance, outlook still generally bearish
See where our team of analysts see your favorite markets and currencies headed in the months ahead on in the Trading Forecasts.
USDCAD undergoing constructive pullback after breakout
USDCAD broke out of an inverse head-and-shoulders pattern last week, putting it in play to trade back towards the high at the beginning of the year. Price action has so far been solid and smacks of corrective. A thorough test of the swing-high from late-January in the mid-13300s may offer a spot to look to take continuation trades if some form of rejection at support plays out.
USDCAD Daily Chart (Corrective after breakout)
Check out the USD Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
USDJPY trading within channel, watch for test of support
USDJPY doesn’t have an appealing set-up in the very immediate future but looking around it has one of the cleaner technical structures. A test of the lower parallel and turn higher may give traders a sound backdrop for longs as a generally bullish bias stays in place for as long as the channel holds up. Conversely, if the lower parallel breaks then shorts may quickly gain the upper hand. In either event, hold or fold, traders can use the channel as guidance.
USDJPY Daily Chart (watch channel support)
Gold price testing resistance, outlook still generally bearish
Gold is up against a line of former support and thus far respecting it as resistance. Price action isn’t convincing yet, but a turn down may put the ball back in the court of short-sellers. Ultimately, at some point looking for a move to the lower parallel back in the summer, currently in the vicinity of 1260/55.
Gold may post small bounce soon but sellers to remain
Check out the Q1 Gold Forecast to see our analysts’ intermediate-term fundamental and technical outlook.
Gold Daily Chart (at resistance)
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX