USDCAD-The pair has broken and closed below its key supports at the 1.1477 level, its May 11’09 low and the 1.1304 level, its Oct 14’08 low following a five-day continued declines the past week. With is key supports violated, attention has now turned to the 1.1070 level, its .50 Ret (0.9058-1.3064 rally) with a loss of that level allowing the pair to weaken further towards its Sept’09 high at 1.0821. Its weekly studies bearish and pointing to the downside suggesting further downside losses. To the upside, the 1.1306 and 1.1477 levels will be targeted where a reversal of roles is expected to turn the pair down again. Further out, resistance levels are seen at the 1.1771 level, its Jan 07’09 low. All in all, having sharply weakened, USDCAD remains vulnerable to downside in the medium term.
Still Biased To The Upside.
EURJPY-EURJPY: As recovery drove the pair higher through the 130.00 level, its psycho level taking back about %75 of its previous week losses last week, EURJPY now looks to build on those gains. In such a case, its 134.26 level, its May 11’09 high will be targeted at the first followed by the 137.42 level, representing its April 06’09 high. On a break above there, its Oct 20’08 high at 138.57 will be aimed at ahead of the 141.74 level, its Oct 14’08 high. However, if a pullback occurs, the cross could retarget the 130.00 level where invalidation will open the door for further declines towards the 126.98 level, its May 18’09 low and then the 124.29 level, its April 29’09 low. On the whole, while the cross holds on to its gains above the 130.00 level, further run to the upside is expected.