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MNI DAILY TECHNICAL ANALYSIS - Strong USDCAD Rally

Price Signal Summary – Strong USDCAD Rally 

  • The trend condition in S&P E-Minis remains bullish and the latest pullback is - for now - considered corrective. A key short-term support has been defined at 5724.25, the Nov 4 low. Initial supports to watch are 5911.09 and 5823.84. Despite Thursday’s gains, a bearish condition in Eurostoxx 50 futures remains intact. The move lower this week marks a resumption of the downtrend that started Sep 30. Price has breached 4746.94, 61.8% of the Aug 5 - Sep 30 bull cycle.     
  • EURUSD remains in a clear downtrend. The pair has entered oversold territory, however, a clear reversal signal is required to highlight a short-term base. This week’s price action confirms an extension of the impulsive bear cycle. EURJPY remains in consolidation mode. A bullish theme is intact and the latest pullback appears corrective. The 50-day EMA lies at 163.48 and has been pierced. A clear break of it would signal scope for a deeper retracement towards 161.85, the Oct 17 low. A strong rally in USDCAD this week reinforces the current bullish condition. The pair has topped 1.3959, the Nov 1 / 6 high. This break confirms a resumption of the uptrend and has also resulted in a breach of 1.3977, the Oct 13 2022 high.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the latest pullback appears to be a correction. However, the latest move down has resulted in a breach of the 20- and 50-day EMAs, and the metal is trading at its recent lows. A bearish theme in WTI futures remains intact and the move lower from the Nov 7 high has reinforced current conditions. The move down exposes $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures continue to trade below their recent highs. Short-term gains are - for now - considered corrective. The trend direction is down and the Nov 6 break to a fresh cycle low reinforces this theme. The trend condition in Gilt futures is unchanged, it remains bearish and gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 - Oct 1 price swing.

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Price Signal Summary – Strong USDCAD Rally 

  • The trend condition in S&P E-Minis remains bullish and the latest pullback is - for now - considered corrective. A key short-term support has been defined at 5724.25, the Nov 4 low. Initial supports to watch are 5911.09 and 5823.84. Despite Thursday’s gains, a bearish condition in Eurostoxx 50 futures remains intact. The move lower this week marks a resumption of the downtrend that started Sep 30. Price has breached 4746.94, 61.8% of the Aug 5 - Sep 30 bull cycle.     
  • EURUSD remains in a clear downtrend. The pair has entered oversold territory, however, a clear reversal signal is required to highlight a short-term base. This week’s price action confirms an extension of the impulsive bear cycle. EURJPY remains in consolidation mode. A bullish theme is intact and the latest pullback appears corrective. The 50-day EMA lies at 163.48 and has been pierced. A clear break of it would signal scope for a deeper retracement towards 161.85, the Oct 17 low. A strong rally in USDCAD this week reinforces the current bullish condition. The pair has topped 1.3959, the Nov 1 / 6 high. This break confirms a resumption of the uptrend and has also resulted in a breach of 1.3977, the Oct 13 2022 high.
  • The long-term trend condition in Gold is unchanged, it remains bullish and the latest pullback appears to be a correction. However, the latest move down has resulted in a breach of the 20- and 50-day EMAs, and the metal is trading at its recent lows. A bearish theme in WTI futures remains intact and the move lower from the Nov 7 high has reinforced current conditions. The move down exposes $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures continue to trade below their recent highs. Short-term gains are - for now - considered corrective. The trend direction is down and the Nov 6 break to a fresh cycle low reinforces this theme. The trend condition in Gilt futures is unchanged, it remains bearish and gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 - Oct 1 price swing.

FOREIGN EXCHANGE    

Keep reading...Show less