Dollar/Cad Buy Recommendation Issued (Daily Classical)

EUR/USD – Remains locked in sideways trade since rallying to fresh multi-day highs by 1.3740 last week. However, with daily studies showing overbought, the risks are for an eventual break of consolidation to the downside, ahead of a resumption of the broader trend. Consecutive daily lower highs are helping to confirm our bearish bias. A break below 1.3420 will ultimately be required to get things moving. Back above 1.3650 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

USD/JPY – Continues to grind higher with today’s break back above 98.60 to likely expose a direct retest of the 99.70 yearly highs over the coming session. A break above 99.70 should then trigger a fresh wave of buying above critical psychological barriers at 100.00 and towards the major double bottom (triggered on the break of 94.60 on 23Feb) measured move objective at 104.00. Dips should be well supported ahead of 96.90. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

GBP/USD – A string of four consecutive daily higher lows was broken on Wednesday after the pair failed to establish above the 100-Day SMA. This set up a bearish reversal day that is showing good downside follow through today. Look for the break below Wednesday’s low to now open the door for a resumption of the broader bear trend. Next key short-term support comes in by 1.4395. Only back above the 100-Day negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.

USD/CHF – The pair has found some decent support at current levels in the form of the 50% fib retracement off of the 1.0370-1.1970 move (1.1170) and the 200-Day SMA (1.1200). Look for a rebound from sub-1.1500 levels back into the familiar range over the coming days. Below 1.1165 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.