The US Dollar posted notable gains into late September versus both the Canadian Dollar and GB Pound to signal an ongoing bullish tone into October.
We see an upside bias for new multi-year highs for USDCAD and a bearish shift again for GBPUSD.
Another new multi-year cycle high on Thursday and a resilient consolidation Friday above 1.3289/78 leaves an upside bias for Monday.
September spikes lower and rebounds rejected a downside correction, whilst the push to a new high leaves a bullish tone for latter September/ early October, to aim for further long term targets.
Short/ Intermediate-term Outlook – Upside Risks:
- We see a more positive tone with the bullish threat to 1.3454.
- Above here targets longer term levels at 1.3819 and 1.4000/30.
What Changes This? Below 1.2948 signals a neutral tone, only shifting negative below 1.2859.
Monthly USDCAD Chart
The probe below 1.5162 sets a more bearish tone for latter September/ early October and for Monday.
Short/ Intermediate-term Outlook – Downside Risks:
- We now see a more negative tone with the bearish threat to 1.5087.
- Below here targets 1.5000 and 1.4856.
What Changes This? Above 1.5494 eases bear risks; through 1.5659 signals a neutral tone, only shifting positive above 1.5819.
Daily GBPUSD Chart