Weekly Overview on Majors' Price Action
EURUSD - Back to the Main Trend Line
The price of EURUSD has reached a new high for the uptrend at 1.1616. After this level was hit, the price dropped 500 pips all the way to the main trend line. It found a local support at 1.1100.
I am expecting it to try to break the local resistance level from 1.1216. If this will happen then we might witness a new rally for the Euro towards a previous resistance level from 1.1385. On the other hand a break below the main trend line would be a strong bearish signal. In this situation, the price might continue to drop all the way to the next key support level from 1.1000.
GBPUSD - 50% Retrace
The previous rally of the cable has gotten the price to a new high for the uptrend,at 1.4737. Bulls were not able to push the price higher so a new corrective move got the price back to 1.4600. The fall was 50% of the previous impulse, and I am expecting this area to act as a good support.
My main expectations are for the price to break above 1.4650 and rally towards the previous highs. On the other hand a drop below 1.4590 would signal a bigger drop, towards 1.4500 or even lower towards 1.4450.
USDCAD - Out of the Wedge
The price of USDCAD has drawn a Rising Wedge and broke out of it, sending the USD back to 1.2900. The drop did not last for long and the price got back to 1.3100.
Currently this last round level is acting as a resistance. A break above it might trigger another rally towards the previous highs, or even new highs. On the other hand a break below the local support from 1.3030, would signal a drop to the previous low from 1.2900.