We continue lower to 9964 & outlook remains negative as we look for 9900/9890, perhaps as far as 9830/25.
USDCAD unexpectedly soared to win back almost all of Thursday & Friday's steep losses. I would not have expected that. Now we have a bullish engulfing candle & almost a double bottom buy signal. Strong resistance at 1.3260/80. Shorts need stops above 1.3300. A break above 1.3300 is an important buy signal for this week.
EURUSD break above 1.0900 was a buy signal to hit the target 0f 1.0990/1.1000. Holding above here saw us target 1.1050/55 & the 2023 high at 1.1075/95. We hit my next target of 1.1180 yesterday.
The pair are overbought as we test a rising trend line going to back to September at 1.1230/40.
I think a short is too risky & I do see further downside risks for the US dollar. A break above 1.1250 should be a buy signal for today targeting 1.1275.
If we dip today I would try a long at 1.1150/40 with stop below 1.1130.
