USDCAD breaks the range

Last week we noted in our analysis that USDCAD got rejected once again at the important short-term resistance of 1.3355 and that soon we should expect a rise in volatility by a break out of the 1.33-1.3355 range. The range was broken downwards.

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Black rectangle- resistance

Blue lines - long-term bullish channel

In our previous post we said that below 1.33 we expect price to test the next support level of 1.32. And so it did happen as price broke 1.33, has managed to fall as low as 1.3170. Price respects thus far the long-term bullish channel and the September lows. Holding above these two points of interest is key for the longer-term trend of USDCAD.

The material has been provided by InstaForex Company - www.instaforex.com

USDJPY challenges 108-108.50 resistance area

USDJPY bulls managed to respect both the Ichimoku cloud support at 106.90 and the 38% Fibonacci retracement. Price has bounced strongly above 108 from that critical support area we mentioned last week.

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USDJPY is trading above the Ichimoku cloud. Price has broken above the cloud and back tested it successfully at 106.90 and has since then bounced more than 100 pips higher. Price is about to break the recent highs and continue towards 110.50. Short-term trend remains bullish as long as price is above the Ichimoku cloud. Support and trend change level is now raised to 106.90. Inability to hold above 108 would be a sign of weakness and something traders should be very cautious of.The material has been provided by InstaForex Company - www.instaforex.com

EURUSD weekly analysis

Bulls managed to hold above 1.10-1.1030 last week giving promises for more upside in the coming days as price has broken above the short-term wedge pattern. Bulls need to hold above 1.10 otherwise we will see this breakout as a false/fake attempt for a bullish signal.

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Black lines - wedge pattern

EURUSD has broken above the upper wedge boundary and is heading towards the 38% Fibonacci retracement of the recent decline from 1.1412. So first resistance is at 1.1085. Next important Fibonacci resistance is at 1.1210 and 1.1147. The RSI is positively sloped and still far away from overbought levels.

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In the Daily Ichimoku cloud chart we observe price has reached the lower cloud boundary which is resistance and the Daily candlestick shows the presence of sellers there by an upper shadow. This does not mean that price could not continue higher over the coming week. However this chart says that we are now approaching important Daily resistance according to the Ichimoku indicator. Support is at the tenkan- and kijun-sen (green and red line indicators). As long as price is above these two, short-term trend will remain bullish.The material has been provided by InstaForex Company - www.instaforex.com

Weekly analysis of Gold

Gold price started the week higher than the previous week close but ended with a lower close. Bulls have failed to hold above the $1,500 pivot level and price remains inside the bearish channel showing more signs of weakness.

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Green lines - bearish channel

Gold price is still inside the weekly bearish channel while the RSI is turning lower from overbought levels breaking below 70. This implies more downside should be expected. Our key resistance level of $1,525-35 remains intact and as long as price respects this resistance we remain bearish and consider each bounce as a selling opportunity. Our expectations remain bearish targeting a move below $1,460.

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According to the Daily Ichimoku cloud indicator we have more bearish signs than bullish ones. Price is making lower lows and lower highs. Price has entered inside the Kumo (cloud) turning trend to neutral. A break below the lower cloud boundary will turn trend to bearish. However we have some bearish signals before price breaks below the cloud. Price has broken below both the tenkan- sen and the kijun-sen, unable to stay above them despite the recent bounce. The Chikou span (green line indicator) is below Price signifying short-term trend is bearish. All the above change on a break above $1,525-35 resistance area. Until then we remain bearish.The material has been provided by InstaForex Company - www.instaforex.com