DailyFX.com -

Talking Points:

- EURJPY, EURUSD holding ground despite many negative events.

- GBPCHF remains a buy on dips, USDCAD breakout emerges.

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

If there was ever a week that could transpire a series of events flush in Euro negativity, last week failed to live up to the billing. A revival of Euro-Zone debt crisis fears made its way through bond and equity markets, June US labor market data clobbered expectations, and the June FOMC minutes showed a Fed more eager to wind down its QE3 program.

Nevertheless, EURUSD finished higher on the week, highlighting the drag low volatility conditions have placed on meaningful follow through in some of the major currency pairs. (On paper, one would have been led to believe the aforementioned events would have led to significant EUR selling.)

So while we continue to monitor EURJPY and EURUSD as their daily charts highlight sell signals in various indicators, there is a admittedly a lack of momentum. The current rangebound states could be the default setting without a more substantial catalyst.

Elsewhere the two non-EUR pairs we're looking at are GBPCHF and USDCAD. Whereas GBPCHF is experiencing a slight pullback amid the EUR rebound, the nature of the Slow Stochastics and MACD indicators thus far offers no reason to think that the uptrend from mid-March is threatened, as the nature of the indicators and price action is still intact.

See the video above for a technical discussion on EURJPY, EURUSD, and GBPCHF, as well as notes on the recent USDCAD buying opportunity at long-term support.

Read more: GBP-crosses Present ST Opportunities as BoE Balancing Act Ensues

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