EUR/USD and USD/CAD look primed for another leg higher
EUR/USD consolidates as the bulls wait in the wings, while USD/CAD looks primed for another leg higher as traders await the latest Canadian CPI figure.
EUR/USD consolidates within uptrend
EUR/USD has spent much of the past week consolidating, with the pair largely treading water since reaching a fresh six-month high last Thursday. The wider market sentiment has taken a hit over the period thanks to numerous central bank reminders of higher for longer rate environments.
However, while stock markets have been on the back foot, EUR/USD has held up well. With that in mind, a decline through the $1.0443 support level would bring about a potential topping signal that brings expectations of a more negative period.
However, until that happens, we are looking at an uptrend that remains in play. As such, another push higher still remains likely as long as the pattern of higher lows holds.
USD/CAD pullback brings potential buying opportunity
USD/CAD has been on the back foot over the course of the past 24-hours, following on from the recent rise into a six-week high for the pair.
The pattern evident over the course of the past month has been one of clear higher highs and lows, with the price typically returning to the deep Fibonacci zone (61.8-76.4%) before pushing upwards once again. That makes things particularly interesting here, with the price having declined into the trendline and 61.8% Fibonacci support today.
What makes this particularly interesting is the fact that Canada also releases their latest consumer price index (CPI) figure in the afternoon, bringing potential volatility. As such, long positions look favourable unless we see the price back through the $1.3518 support level to end this recent uptrend.
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