Trade view /
06 June 2016 at 7:09 GMT
USD Index – There was a strong selloff on Friday after the poor US nonfarm payroll figures
. The medium-term bias remains mildly bullish. We have a 261.8% extension level at 93.83 (from 95.96-95.14) and have seen a mild recovery overnight. Rallies are likely to be sold into today as this corrective sequence plays out.
USDCAD – The monthly chart highlights a bearish Gartley pattern that’s keeps the focus to the downside. The next formidable barrier is at 1.1200.
Monthly - Bearish Gartley
The weekly chart highlights a bullish Outside Bar at the base and mixed (weekly) results as the commodity pair moves higher in a corrective formation. The likely zone to focus on is the 50% pullback level at 1.3573.
Weekly - Corrective formation
The daily chart highlights a wedge breakout with the target level of 1.3155 achieved.
Daily - Wedge breakout
The intraday chart (two-hours) highlights the pair in either a corrective channel formation or a descending triangle (with a pause overnight close to the previous low). Both have an immediate downward bias. Friday's Marabuzo level is at 1.3013. Bespoke resistance is at 13010. This is our zone to get short today.
Two-Hour - Corrective channel or bearish triangle
Management and risk description
selling at 1.3010.
channel base at 1.2870.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more