- Ongoing US Dollar weakness continues to impact on both the USDJPY USDCAD Forex rates.
- The May “risk off” phase has extended into June in the FX space, with a more dovish tone from Federal Reserve Speakers keeping the US Dollar weak, whilst this has encouraged global equity markets to rebound.
- The USDJPY continues to extend lower through early 2019 supports
- The USDCAD FX rate has plunged lower in early June through a key 1.3270 level, to shift the intermediate-term outlook to bearish.
USDJPY immediate downside risks intact
An erratic Friday through the US Employment report, but a poke above 109.49 to then see a failure back lower from below the 108.93 resistance (from 108.62) sustains negative forces from the late May/ early June plunge through notable supports at 108.47 and 107.97 (from January 2019), keeping the bias lower into Monday.
The May surrender of 109.66 set an intermediate-term bear trend
- We see a downside bias for 107.79/74; break here aims for 107.10.
- But above 108.62 quickly opens risk up to 108.93, maybe towards 109.59.
Intermediate-term Outlook – Downside Risks: We see a downside risk for 107.74, 106.72/55 and 105.00/104.78
- What Changes This? Above the resistance gap at 109.92 shifts the outlook back to neutral; above 110.67 is needed for a bull theme.
4 Hour Chart
USDCAD intermediate-term bearish shift
A plunge lower in early June and again Friday to shift the intermediate-term outlook from bullish to neutral and now to bearish through 1.3270.
Furthermore, the plunge lower Friday through the key 1.3270 level keeps the risks lower for Monday.
- We see a downside bias for 1.3258 and 1.3246; break here aims for 1.3206, maybe towards 1.3155.
- But above 1.3316 opens risk up to 1.3366.
Intermediate-term Range Breakout Parameters: Range seen as 1.3270 to 1.3565.
- Upside Risks: Above 1.3565 sets a bull trend to aim for 1.3665, 1.3794 and 1.4000.
- Downside Risks: Below 1.3270 sees a bear trend to target 1/.3114/10, 1.3064 and 1.300.
4 Hour Chart
Forextraders' Broker of the Month
ForexTB is generally considered a reliable and reputable firm. It offers a variety of desirable features and attracts traders from all over Europe. The brokerage is fully regulated and licensed by the Cyprus Securities and Exchange Commission (CySEC) and is fully compliant with the European Securities and Markets Authority (ESMA). Customer reviews are usually positive, and independent industry websites that have reviewed ForexTB have concluded that the broker is safe...