USD/CAD Turns Bullish as GBP/USD, AUD/USD Lose Momentum

USD/CAD Technical Analysis

I’m buying the US dollar against the Canadian dollar over the last couple of days, and the Wednesday session doesn’t look any different. I’m actually really bullish for the short term, and with the trade spat between the Americans and the Canadians, this is going to be about the Canadian dollar more than anything else. Short-term pullbacks represent value to me, but full disclosure, already long in a couple of smaller positions. I do believe we have further to go.

I’ll be looking at any pullback at this point in time as a bit of value, especially near the 1.3850 level. The 1.39 level could offer a bit of resistance, followed by 1.3950. I will revisit my opinion when we get there, but unless something changes, I suspect the Canadian dollar has a tough road ahead.

GBP/USD Technical Analysis

The British pound is starting to roll over here on the hourly chart. It’s interesting. We did get a little overbought there for a while, and now we’ve shown quite a bit of resistance near the 1.3650 level. If we continue to drop here through the 1.36 level cleanly on an hourly chart, I might be tempted to short, or maybe I’ll just buy the US dollar against other currencies, because at the end of the day, the British pound has been stronger than most others, so probably easier sledding in other currencies as it were.

AUD/USD Technical Analysis

The Australian dollar looks like it’s trying to roll over as well. This is a market that I might be interested in shorting for a little 20 or 30 pip move. I wouldn’t look for anything major here, but the Aussie dollar is a little overvalued from what I believe at this point in time, and from some of the research I’ve done.

That being said, this is a short-term move at best. To the upside, if we were to break above the 0.72 level, it would change everything, and I would flip to bullish. I’m not necessarily bearish here, I’m just looking at an overextended market.

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