EUR/USD hits trendline resistance, while USD/JPY edges up and USD/CAD holds steady
The euro has seen its rebound against the dollar stall, while the US currency has made some gains against the yen and the Loonie.
EUR/USD tests trendline resistance
The EUR/USD has continued to rally, moving back to $1.06 on Tuesday.
However, this brings the pair towards trendline resistance from the July highs. The last time this trendline was tested as back in August, and resulted in a fresh drop. A failure to close above the trendline maintains the bearish view and could see a lower high created.
In the short term, a continued rally could target $1.07 and then $1.0735.
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USD/JPY struggles to move higher
Some bullish momentum has faded here with USD/JPY after the surge to ¥150.00 last week.
However, the broader uptrend is still intact, with the price yet to test last week’s lows or the still-rising 50-day simple moving average (SMA). A close above ¥149.50 could signal that another attempt to close above ¥150.00 could be in progress, though that might risk intervention by Japanese authorities.
Even a deeper retracement towards ¥145.00 would still leave the uptrend broadly in place.
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USD/CAD drops back from higher high
The USD/CAD rally here from the summer lows continues, though a weaker dollar has seen a sharp pullback from last week’s higher highs.
A drop towards the 50-day SMA or uptrend support from the July lows looks likely, and could see fresh buying pressure emerge. Should a higher low be created, then a new leg higher towards C$1.37 and higher could begin.
A close below trendline support would dent the bullish thesis, though mid-September saw buyers emerge around C$1.34/C$1.345. A more bearish view would need a close below this mid-September zone of support.
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