The USDCAD market has been bearish for quite a while. On the monthly time frame, a bearish continuation candlestick was printed in May, and it nestled within the 1.20870/1.19110 multi-year horizontal support zone (green). This is a significant reaction zone, and we may see some sideways of market operation in it before any directional clarity.
On the weekly time frame, market operation is in a falling channel (red). Presently, it has entered the upper boundary of the 1.20870/1.19110 multi-year horizontal support zone (green) seen on the monthly time frame. In the last four weeks, market operation has been sideways in the zone, printing mixed candlesticks of almost equivalent size – largely miniature. As the zone is a major horizontal support area, we may see further sideways of market operation, or even a northward pullback, before directional clarity.
On the daily time frame, price action has been sideways for 21 days in the 1.22000/1.20060 horizontal channel (blue). The channel is proximal to the 1.20870/1.19110 multi-year horizontal support zone seen on the monthly time frame. Until there is significant breakout of price action from the 1.20870/1.19110 multi-year horizontal support zone, we may not have confidence in any directional surge.
The GBPUSD technical bullish structure is still intact. On the monthly time frame, a bullish candlestick was printed in May which moved above the consolidation area that has been in place since February, but the May bullish candlestick failed to close above the high of the bullish candlestick printed in February. Market operation has entered the 1.41460/1.43370 multi-year horizontal resistance zone (red) and we may see an increase in bearish pressure as market operation tackles the zone.
Market operation on the weekly time frame is presently sideways as it tackles the 1.41460/1.43370 multi-year horizontal resistance zone (red) seen on the monthly time frame. Nevertheless, as the technical structure still favours bulls more than bears, we may still see some bullish attempt for liquidity grab in the early part of this week. However, I doubt if we would see a sustained bullish drive.
Price action on the daily time frame is in a sideways mode. The market is tackling the multi-year horizontal resistance at the 1.41460/1.43370 zone (red). Last Friday, price action printed a bullish candlestick which, in real sense, is an inside-bar to the bearish candlestick printed on Thursday. Technically, the market is ambivalent owing to increased bearish pressure. Nevertheless, we cannot rule out some bullish move for liquidity grab northward before any daring bearish drive.
The EURUSD market is still in a supportive bullish technical structure, but market operation is presently at an area of consolidation. On the monthly time frame, market operation printed a bullish continuation candlestick above the high of the April bullish candlestick. Meanwhile, the May bullish candlestick has entered the 1.22380/1.23385 consolidation area (red), which has held as horizontal resistance since April 2018. Technically, the area is susceptible to an increased bearish pressure and may yield a southward turnaround or bearish correction. The 1.20160/1.19270 zone (green) is the prevailing horizontal support on the monthly time frame.
Market operation on the weekly time frame is still technically in favour of bulls, but there is an increased bearish pressure as it navigates the 1.22380/1.23385 consolidation area (red) seen on the monthly time frame. The candlestick printed in the past four weeks have been relatively small and have wicks of different sizes at both ends. This portends a slowdown in bullish directional momentum. Although we may still see some bullish move, any bullish misstep may incentivize bears to seek liquidity grab at an area of value southward.
On the daily time frame, price action has broken below an inner rising trendline (blue) to respect an outer rising trendline (red) traceable to April 5, 2021. On Friday, price action printed a bullish candlestick from the outer rising trendline (red) but the candlestick is basically an inside-bar to the relatively bigger bearish candlestick printed on Thursday. Technically, this shows a bearish influence. Any bullish candlestick printed in the early part of this week should be suspected if it lacks directional potency. A bullish misstep would incentivize bears for at least a southward pullback to an area of value, such as the 1.19900 round number handle (sandybrown). Generally, I do not trade on Mondays, so I will await what price action does in the early part of the week.
Should the EURUSD market close above the 1.22250 area on the D1 tf today, we may see further bullish move as technicals and the order flow context on the D1 tf still support bulls more than bears.
Although the general technical structure of the XAUUSD market still favours bulls more than bears, presently the market operating mode is witnessing an increased bearish pressure. I will post my technical perspective on this asset and three pairs before the market opens.
The USDCAD market is still technically bearish although, presently, market operation is in a corrective bullish mode. On the monthly time frame, market operation is tackling the 1.20757/1.19110 multi-year horizontal support area (green). The May bearish continuation candlestick nestled in the area, while the interim June candlestick heads northward from there in a bullish mode.
On the weekly time frame, market operation is grinding southwards in a falling channel (red). However, in the past five weeks it has been in a sideways mode as market operation tackles the 1.20757/1.19110 multi-year horizontal support area (green) seen on the monthly time frame. Last week, it printed a bullish candlestick that took market operation just a few pips above the area of consolidation; this is a technically expected bullish correction at a major horizontal support area and we may a southward turnaround after the bullish pullback.
Price action on the daily time frame has been consolidating for several days. However, last Friday, a bullish candlestick was printed that pushed price action a few pips northward of the upper part of the area of consolidation. This is likely to be a corrective move as the technical structure and order flow context favour bears. After a corrective northward pullback to an area of value, such as the 1.22620/1.23285 area (magenta), we may see a southward turnaround.
The 1904.00 area (purple) is presently the horizontal resistance for XAUUSD market operation on the monthly time frame. The May bullish candlestick nestled in the area while the interim June candlestick took a southward turn from the area. Although the general technical structure still favours bulls more than bears, presently, the market operating mode is witnessing an increased bearish pressure.
The market operation on the weekly time frame is sideways but technicals still favour bulls. An inner rising trendline (blue) is still active, while an outer rising trendline (red), which is a long way off, may be consequential in future. Nevertheless, as the market operation is presently around the 1904.00 horizontal resistance area (purple), we may still see some sideways of market operation. Any bullish misstep may incentivize bears.
On the daily time frame, technicals and order flow context still favour bulls even though there is increased bearish pressure. Price action is in a rising wedge (blue). Presently it is retesting the channel support trendline in the context of a consolidating mode. Nevertheless, any bullish misstep in the early part of this week may incentivize bears for a southward move to an area of value, such as the 1857.00/1844.00 horizontal support area (green).
Technically, the GBPUSD market structure is still bullish, but market operation is presently sideways as it tackles a significant horizontal resistance zone. On the monthly time frame, in May, market operation pushed above an area of consolidation that had been in place for three months to print a bullish candlestick which nestled at the lower boundary of the larger 1.41460/1.45078 horizontal resistance zone (red) – a wide zone of more than 390 pips that still offers room for bullish liquidity maneuver. However, the interim June market operation is bearish. This indicates an increase in bearish pressure in a bullish market environment.
On the weekly time frame, market operation is respecting a rising trendline (purple) traceable to June 2020. Presently, market operation is in a sideways mode above the trendline as it tackles the 1.41460 horizontal resistance proximal level. Should bears seize on any further bullish misstep, we may expect them go for a retest of the rising trendline or the immediate horizontal support around 1.36920 (green). Alternatively, a bullish resurgence may see market engineering for northward liquidity grab before any southward turnaround.
On the daily time frame, although the technical structure favours bulls, the 1.40830/1.42070 area (purple) has operated as a horizontal channel for price action in the last 20 days. The area is the lower part of a larger multi-year horizontal resistance zone seen on the monthly time frame. Technically, a significant bullish breakout from the area may see a northward surge for liquidity, but a significant bearish breakdown of the area may see a bearish retest of the 1.39300/1.38490 horizontal support zone (light green). Meanwhile, a rising trendline (magenta) is still active as a supporting incline.
The EURUSD market is sideways as market operation tackles the long-term horizontal resistance around the 1.22270/1.23050 area (red). On the monthly time frame, market operation printed a relatively small bullish candlestick in May while the interim market operation in June presently favours bears.
On the weekly time frame, market operation is in a rising channel (blue). However, although the technical structure is still bullish, there is increased bearish pressure. Market operation inched to the multi-year horizontal resistance in the 1.22270/1.23050 area (red) in the first week of January and effected an 88.6 Fib retracement before surging northwards for a retest of the area in May. Since then, there has been a sideways of market operation, but the last three weeks have printed candlesticks favourable to bears. Apparently, bulls are finding it difficult to significantly breach the multi-year horizontal resistance area. Failure on the part of bulls to regain directional momentum may incentivize bears to push for further southward drive to an area of value, such as the channel support trendline.
On Friday, EURUSD price action broke below an inner rising trendline (magenta). However, the bearish candlestick printed on Friday nestled at a horizontal support around 1.21070, proximal to the low of the long-tailed bullish candlestick printed on June 4 and validated an outer rising trendline (purple) with a low-tail. Although we may still have further bearish correction, technically, until the 1.20010/1.19520 area (green) is significantly broken down on a daily closing basis, the general market structure still favours bulls.
Although, technically, the XAUUSD market is still bullish, it is experiencing increased bearish pressure and presently the order flow favours bears. I will give details on this asset and three other pairs before the market opens.
The XAUUSD market continues to experience increased bearish pressure. On the monthly time frame, the interim bearish market operation in June has erased the bullish market operation of May. Although, technically, the market structure on the monthly time frame is still bullish, the order flow and momentum favour bears.
There is a strong bearish momentum on the weekly time frame. The bearish continuation candlestick printed last week erased three weeks of bullish operation that began with a breakout from the 1764.60 consolidation area in the first week of May. Presently, market operation is at the 1764.60 area, a weekly horizontal support area. Technically, such an area may witness some bullish or sideways of market operation. However, should bears maintain their influence in the early part of this week, we may see them target the next technical zone around 1724.00 (green). I will be interested in how the market reacts to an active rising trendline (red) in the early part of this week.
Price action and order flow context on the daily time frame presently favour bears. However, it is presently tackling a demand/support zone, the 1773.40/1761.60 area (sandybrown). Such an area is susceptible to sideways or bullish price action should bears lose market control. Nevertheless, we may still see some southward bearish surge for liquidity grab in the early part of this week.
The USDJPY market is in a consolidation mode in the context of a bullish technical structure. On the monthly time frame, the bullish surge that began in January culminated in March, giving way to a sideways of market operation that is still prevailing. The 108.00/110.80 zone (purple) is the prevailing channel of sideways market operation.
Market operation on the weekly time frame is respecting a rising trendline (red) traceable to January. Last week, market operation made a bullish move that broke out of a consolidation that had been in place for two weeks. The bullish candlestick printed surged to the 110.80 area and retraced, leaving a long upper shadow. Technically, bears are exerting more pressure in the market. Nevertheless, the ‘wicky’ tops on the upper left side of the chart may incentivize northward market engineering for liquidity grab.
Price action on the daily time frame is technically bullish and a rising trendline (blue) is still active. However, there is increased bearish pressure as price action tackles the 110.80 horizontal resistance area. The area is the upper boundary of the 108.00/110.80 (purple) horizontal channel that have been in place since April. Meanwhile, although technicals still favour bulls, we should be wary of a decline in directional momentum.
The 1.22275/1.17050 zone (purple) is the prevailing EURUSD market operation zone on the monthly time frame. Presently, the interim June market operation is bearish in the zone. Market operation has broken far below the low of the bullish print of May.
The EURUSD technical market structure on the weekly time frame is still bullish. A rising trendline (red) traceable to March 2020 is still intact and likely to be consequential as support. However, presently, the market operation is on a bearish mode. Last week, market operation printed a relatively large bearish continuation candlestick, whose significant momentum broke down a previous horizontal support area. This may threaten the next one at the 1.17050 area, retesting the rising trendline in the process.
Price action on the daily time frame is bearish. The candlesticks printed last week Wednesday and Thursday were relatively big and directionally bearish. However, last Friday produced a relatively smaller candlestick as price action tackles the minor technical area around 1.18630 (sandybrown). Should bears maintain their influence in the market, we may see a further bearish move in the early part of this week. We should note that price action is generally operating within the 1.23482/1.16010 trading range (blue) and it is presently around the 61.8 Fib area. Any further bearish momentum may threaten the 1.17130 handle (sandybrown), which is near the 88.6 Fib zone – technically an area from which we may see a strong bullish pullback.
Technically, the GBPUSD market is still bullish. However, market operation is in a bearish mode. On the weekly time frame, market operation made several attempts to breach northward the 1.40625/1.43689 multi-year horizontal resistance/supply zone (purple). Presently, it is in a southward mode at a minor horizontal support area around 1.38070. The bearish momentum carried by the relatively large candlestick of last week that displaced below a previous consolidation area is likely to continue in the early part of this week. This may see further bearish move to the 1.36800 area (green), which is the next horizontal support.
Price action on the daily time frame is technically in a bearish mode. Last Friday’s bearish continuation candlestick broke down a minor demand/horizontal support combo zone around 1.39330/1.38530 (magenta). This bearish momentum may see a southward surge to the 1.36800 handle (green). A bearish misstep may see bulls effect a northward retracement, perhaps for liquidity grab. However, should bears sustain the southward drive, the next target is the 1.35640 area (sandybrown).
The directional momentum on the H4 timeframe favours bears. Previous demand/horizontal support levels/zones are being breached. Last week Friday, price action surged below a minor horizontal support at 1.38070. Should bears maintain their influence in the market in the early part of this week, we may see further southward breakdown of technical zones.
As price action had broken above the immediate supply/horizontal support zone (now being retested) on the D1 tf, the technical outlook on the USDCAD would be bullish if the current bearish mode fails to break down the 1.21660/1.21240 demand/horizontal support zone (green).
GBPUSD market is newsy today. Presently, price action is in a ranging mode awaiting news-induced momentum: about 170 pips northward to a feasible supply/resistance zone or 130 pips southward to a feasible demand/support zone.
The USDCAD market is still technically bearish. On the monthly time frame, the order flow context favours bears. However, the interim market operation in June is in a bullish pullback, which is temporary in nature. Technically, interest should shift to what happens at the 1.19120 area (green), which is the immediate horizontal support.
On the weekly time frame, the bullish pullback of market operation two weeks ago is being mitigated as last week saw the printing of a bearish candlestick. We may see a southward continuation this week as the overall technical market outlook is bearish and the order flow context is in sync. The 1.19120 area (green) is the immediate horizontal support.
Price action on the daily time frame completed a 61.8 Fib retracement of the 1.26525/1.20110 downward swing on June 18 and it is now in a southward turnaround. Although, meanwhile, price action is in a sideways mode, technically, we can expect a bearish continuation to at least the demand at the 1.21710/1.21250 zone (purple).
AUDUSD market operation is technically ambivalent in a bullish market environment. On the monthly time frame, the candlesticks printed since January have been of mixed nature, equivalent in size and relatively small. The May candlestick was doji-like. Although the June interim print is bearish, it is still at the upper region of the bullish candlestick of December 2020. Technically, the December 2020 bullish print maintains the market’s bullish technical structure. The prevailing horizontal resistance is the 0.78310 area (red), while the prevailing horizontal support is at the 0.75260 area (green).
On the weekly time frame, the market structure is still technically bullish, but it is witnessing increased bearish pressure. Two weeks ago, there was a bearish break below the 0.75260 horizontal support area (green) seen on the monthly time frame; an area that has held as support for several weeks. But this breakdown was short-lived as, last week, bulls effected a northward pullback of market operation above the area. Should there be a bullish follow-through, we may see market operation retest the 0.77300 area, the area is the high of the bearish print of two weeks ago. However, any bullish misstep would incentivize bears for a southward turnaround.
On the daily time frame, on June 18, there was a bearish impulsive drive that broke below a minor area of consolidation. Although the last five days have seen some bullish price action, the miniature nature of the bullish candlesticks shows that the market is under bearish pressure. Technically, the market structure still gives bull an edge over bears, but we may see bears seize on any further bullish weakness and push for a southward turnaround.
The EURUSD market is still technically bullish, but the market operation is in a sideways mode. On the monthly time frame, the prevailing horizontal resistance is at the 1.22610 area (red), while the 1.17050 area (green) is the horizontal support. The May candlestick was bullish and took market operation to the 1.22610 horizontal resistance (red), while the interim June market operation is bearish and surged below the low of the May bullish candlestick before a brief northward pullback, indicating that bulls are still influential in the market. Should bears seize on any bullish weakness, pattern traders may look for probable consummation of an ‘M’ pattern at the 1.17050 horizontal support area (green).
On the weekly time frame, market operation is consolidating at the upper part of a bullish market structure. The 1.17050/1.22610 consolidation range is approximately a third of the larger 1.07740/1.23490 trading range. Two weeks ago, a bearish market operation broke down the 1.20940 lower part (magenta) of a mini consolidation area leaving a behind a supply area that is susceptible to a bullish retest. An attempt of a bullish retest of the supply area was done last week with a northward market operation but it fell short of the mark. The bullish print of last week did not even reach the middle of the relatively big bearish candlestick printed two weeks ago. Although we may see another bullish attempt in the early part of this week, any bullish misstep may see bears push for a southward continuation.
The technical impulse of price action on the daily time frame is bearish as a supply zone has been created around the 1.20940/1.21330 area (magenta) by the most recent bearish drive. However, a bullish pullback has kicked in. Although, presently, there is reduced directional momentum as price action has gone sideways in the last five days as it tackles a minor horizontal resistance around 1.19740, we may expect further bullish pullback in the early part of this week. Nevertheless, failure of price action to mitigate the 1.20940/1.21330 supply area (magenta) would incentivize bears to push for a southward continuation. In this situation, timing of market entry based on directional momentum is important. Technically, I am more bearish EURUSD than bullish, but, as a swing trader, I will await a momentum shift either mitigating supply/horizontal resistance northward or confirming a bearish turnaround.
