The 7/12 US session saw some risk put back on, as well as oil price rally. But the CAD seems to be unproportionally strong despite these dynamics. No explanation here, just a reflection of the dominating performance by the Loonie across the board as the 7/12 session winds down. All the charts are in 1H time-frames, except AUD/CAD, which is in the 4H TF, all taken around 3:30PM EDT.
USD/CAD – After a break above 1.0230, the market looked poise to expose higher resistance at 1.03-1.0315. A pullback was expected as the market tested the short-term channel resistance seen in the 1H chart, but the slide was heavier than it should for just a correction. This invalidates the bullish breakout, and adds uncertainty to any technical outlook for USD/CAD. Some time might be needed for next technical development to provide directional clues.
EUR/CAD – Digs into new all-time lows after breaking below 1.2444.
GBP/CAD - After breaking below a rising trendline during the late 7/11 and early 7/12 session, it consolidated. Then during the US 7/12 session, it plunged, paring the entire rally from July 5 to July 11 (1.5720 – 1.5890) in basically 1 global session.
AUD/CAD – First came a breakout above a consolidation which looked to expose higher resistance levels. But the breakout was not able to confirm, and the market started to fall during early 7/12 session after the poor Australian jobs data. It did a 180, about-face, and has basically formed a double top.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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