In Swissquote’s Tuesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and USD/CAD. To view and download the entire report, click here (PDF).
GBP/USD: Bouncing
• GBP/USD is bouncing, as can be seen by the break of the initial resistance at 1.6052 (previous support). However, a break of the resistance at 1.6176 (intraday high) is needed to improve the
short-term technical structure. Another resistance stands at 1.6287. Hourly supports can be found at 1.6027 (intraday low) and 1.5944.
• In the longer term, the collapse in prices after having reached 4-year highs has created a strong resistance at 1.7192, which is unlikely to be broken in the coming months. Despite the current short-term bearish momentum, we favour a temporary rebound near the support at 1.5855 (12/11/2013 low). A resistance lies at 1.6525.
USD/CAD: Successful test thus far of the strong resistance at 1.1279
• USD/CAD has successfully tested the strong resistance at 1.1279 (20/03/2014 high), increasing the odds of a short-term corrective phase. Hourly supports can be found at 1.1072 (02/10/2014 low) and 1.1053. An initial resistance lies at 1.1184 (intraday high).
• In the longer term, the technical structure looks like a rounding bottom whose minimum upside potential is at 1.1725. A break of the resistance at 1.1279 (20/03/2014 high) would confirm this scenario. Strong supports are given by the longterm rising trendline (around 1.0750) and 1.0621 (03/07/2014 low).
