Charts of the Week - Dollar strength returns + USD/CAD short squeeze

GBPUSD

  • GBPUSD is showing first signs of weakness following the short squeeze in February
  • Cable was rejected at 1.3350 resistance and is approaching a major support area between 1.3110 and 1.3130
  • Break below that area could increase pressure on the currency pair; with 1.2980 the next major level to watch
  • GBP rally was driven by renewed optimism that a no deal Brexit will not happen; however, uncertainty remains high
GBPUSD
GBPUSD

EURGBP

  • EURGBP is another currency pair worth watching
  • Positive RSI divergence on the Daily chart and bounce ahead of 0.85 support suggests that the downtrend has paused for now
  • However, EURGBP will need a clear break above 0.8650/60 resistance to pave the wave for a possible recovery
EURGBP
EURGBP

USDCAD

  • USDCAD is rallying as Oil is consolidating and the US Dollar gaining fresh strength
  • Traders might keep a close eye on the resistance area between 1.3340 and 1.3375 - which acted as key support/resistance many times in the past
  • A daily close above 1.3375 could potentially trigger a larger short squeeze
  • The next significant level of resistance would then lie at 1.35
USDCAD
USDCAD

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