The US dollar is experiencing some pressure, but as we know, not all currency pairs are equal, and this has a different technical impact on different currencies.
Here the views on Dollar/CAD and Dollar/yen from Goldman Sachs:
Here is their view, courtesy of eFXnews:
USD/CAD has held its uptrend after the pair tested and held the uptrend from Sep. 19th at 1.1958 (vs. the low 1.1945), notes Goldman Sachs.
“The market formed a hammer exhaustion last Wednesday and has since recovered sharply higher. It also retraced near 38.2% of the July/March rally at 1.1992. Momentum is finally stabilizing from very extreme levels,†GS adds.
“Overall, it seems to low may be in for now. The next level to focus on is 1.2285 (the 100-dma and 38.2% retrace from Mar. 18th). Over time, 1.2495 seems feasible (61.8% retrace),†GS projects.
“From an Elliott wave perspective, this looks like the beginning stages of a corrective process. Would ideally want to play the range between ~1.20 and 1.28 until further signal develops (an ABC or another 5-waves?),†GS advises.
Turning to USD/JPY, GS notes that it’s currently breaking through the top of (yet another) triangle consolidation.
“There seems to be a observable ABCDE in place suggesting that the market should be trend-ready,†GS argues.
“The next level higher is 61.8% of the initial Mar. 10th/26th decline at 120.62. Through that point, the bigger resistance area to focus on is 121.85-122.04 at the highs from Dec. 8 th/Mar. 10th,†GS projects.
“In classic tech terms, the height of the triangle extrapolated from the break-point implies potential for a move to ~123.24,†GS adds.
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