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False Breakout For EUR/GBP; USD On The Back Foot Again

Published 01/26/2018, 03:46 AM
EUR/GBP
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USD/CAD
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NZD/USD
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Mario Draghi did not say anything new. His comments were similar to the recent ones. Consensus about his statement says that the ECB governor was not dovish enough. That allowed to lift the EUR higher. On EUR/GBP that created an opportunity for a false breakout pattern. Two days ago, the price attacked the support on the 0.785 (green) and it looked like a successful one. Yesterday, the price reversed and came back above that area, questioning the bearish intentions. As long as the price stays above the green area, the sentiment is positive.


USD/CAD tried to reverse the recent drop but the price stopped exactly on a horizontal resistance created by the support from the 5th and 17th of January. As long as we stay below the purple area, the sentiment is negative.


NZD/USD made an attack on the long-term up trendline and bounced from it creating another good buying opportunity. Seems like traders will quickly forget the weaker CPI data. Currently we do have higher chances for a further upswing than for the reversal.

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