MARKET SNAPSHOT:
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TECHNICAL ANALYSIS:
NZD/CAD: Confirms Bearish Wedge at highs
If history is anything to go by do not expect precise levels of S/R to be respected, or the pattern to hit the eventual target back at the 0.9020 lows in a nice and clean manner (assuming it does).
That said the intraday price action is setting up for a potential swing short beneath the daily pivot. Always allow room for market 'noise' around pivots, especially when trading commodity crosses such as NZD/CAD.
- 0.9312 is the initial target with a break below then targeting 0.9232.
- A break above 0.940 could target 0.9427-45
If there is any chance of CAD strength tonight it will be from BoC Poloz reducing expectations of a seconds rate cut for Canada.
GBP/USD: 1.548 is the level to watch
We appear only a few pips away form a bullish breakout on Cable as we approach Yellen's 2nd testimony. A repeat of yesterday could indeed give it that final push up through the Dec '14 low to target 1.5620-70 zone.
The Bearish Wedge is beginning to look more unlikely as it approaches the December low but even if it continues to hold as resistance then 1.5310-40 and 1.520 are zones of support likely to scupper its chances of completing the pattern back by the lows.