EUR/USD: Severely overbought conditions – The downside is likely to be limited

EUR/USD – USD/CAD

EURUSD hit the target of the 2020 high at 1.1490/99 then broke higher to 1.1540 as we look for 1.1560/70.

USDCAD shorts at 1.3570/90 took a 60 pip profit at first support at 1.3515/05. Longs here however stopped below 1.3490. We then hit the next target of 1.3440/30.

Daily Analysis

EURUSD in a bull trend after recent consolidation phases as we bounce back through 1.1490/99 to very minor 2 week trend line resistance at 1.1530/40. Further gains target 1.1560/70 & perhaps as far as strong resistance at 1.1585/95 for profit taking on any remaining longs. Shorts need stops above 1.1610.

We are severely overbought but for now, the downside is likely to be limited. Obvious support at 1.1470/60, with stops below 1.1440.

USDCAD breaks 1.3515/05 for a sell signal targeting 1.3475, 1.3440/30 & perhaps as far as 1.3400 today. Further losses meet a buying opportunity at 1.3360/50, with stops below 1.3330.

First resistance at 1.3485/95. Try shorts with stops above 1.3515. A break higher meets a selling opportunity at 1.3560/70, with stops above 1.3590.

Chart