DailyFX.com -

Talking Points:

- EURUSD below July 2012-July 2013 TL, needs below 1.3475.

- GBPCAD and USDCAD still both point to breakouts higher.

- Reminder that July forex seasonals in QE era work against USD.

It's admittedly another quiet start to the trading week, with fewer than ten economic data releases (including central banker speeches) on the calendar for Monday, July 21. Nevertheless, with geopolitical tensions brimming in Eastern Europe and the Middle East, now's not the time to stay away from the trading screen.

Rather, the low frequency of economic data combined with the high intensity of emotional news headlines crossing the wires makes for trading conditions better suited for technical traders as timing and precision increase in importance.

One overarching theme removed from the crisis gauntlet, renewed Euro depreciation, has a chance at influencing prices this week so long as focus continues to shift to the weak inflation, weak growth environment. It is within this context that we continue to eye EURUSD as it tests the ascending trendline from the July 2012 and July 2013 lows.

Additionally to start the week, we continue to monitor the GBP-crosses, but not necessarily for direct impact from the British Pound. Instead, GBPCHF serves our preferred proxy for EURGBP given the relationship between CHF and EUR since September 2011. GBPCAD remains a prime breakout opportunity, especially as USDCAD attempts to base off of major trendline support from the September 2012 and September 2013 lows.

See the video above for the aforementioned technical setups in GBPCAD, GBPCHF, EURUSD, and USDCAD, our four main non-crisis pairs (i.e., the JPY-crosses) that we're monitoring for potential breakout moves over the next several days.

Read more: EUR/USD Falls to Crucial July 2012 Trendline; GBP-crosses Resilient

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center