Waiting for the ECB

Nothing last forever, even the depreciation of the American Dollar. For the last two days USD is finally correcting recent weakness, which actually creates a great opportunity for the trend followers. They can enter the market with better prices.

GBPUSD drops sharply even despite the fact that we got better Retail Sales data. We are approaching a good looking support on the 38,2% Fibonacci, where there is also an up trendline and the correction equality pattern.

EURUSD is obviously waiting for the ECB and that will be the game changer here but from the technical point of view we are approaching a strong support made from the trendline, correction equality pattern and the highs from the 12^th of July. If there was no ECB today, we would have a strong buy signal here.

On the USDCAD finally the demand showed up. The price tries to break the upper line of the channel down formation. The long-term sentiment is still very negative but the chances for the 100 pips correction increased significantly.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis