In SWISSQUOTE’S Tuesday technical trading report, their research team outlines the major technical levels of popular currency instruments for the short term trader, below is the outline for the GBP/USD (very active in the last couple of months) and USD/CAD. You can download the full report by clicking here.
GBP/USD: Trying to bounce…
• GBP/USD showed signs of buying interest Monday after its relentless decline since mid-July. However, the hourly resistance at 1.6893 (01/08/2014 high) needs at least to be broken to suggest some exhaustion in short-term selling pressures. Another resistance can be found at 1.6928 (intraday high). An hourly support lies at 1.6814.
• In the longer term, the break of the major resistance at 1.7043 (05/08/2009 high) calls for further strength. Resistances can be found at 1.7332 (see the 50% retracement of the 2008 decline) and 1.7447 (11/09/2008 low). A key support stands at 1.6693 (29/05/2014 low).
USD/CAD: Fading near the key resistance at 1.0961?
• USD/CAD has exhibited significant upper shadows in the last three days, suggesting increasing selling pressures near the key resistance at 1.0961 (see also the 50% retracement). However, a break of the hourly support at 1.0877 (31/07/2014 low) is needed to confirm these warning signals. Another support stands at 1.0797 (29/07/2014 low), whereas another resistance lies at 1.1053.
• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. However, a break of the support area implied by the long-term rising trendline and 1.0559 (29/11/2013 low) would invalidate this long-term bullish configuration.
