Home USD/CAD: Still En-Route To 1.30; AUD/USD: H&S Confirmed –

USD/CAD: Still En-Route To 1.30; AUD/USD: H&S Confirmed –

Both AUD and CAD  managed to overcome recent blows and stage recoveries. Is this sustainable? Not so fast.

The team at SocGen sees both  commodity currencies weakening, and  sets targets:

Here is their view, courtesy of eFXnews:

USD/CAD in resuming its move higher and still en-route to test March 2009 highs of 1.30, notes SocGen.

“Monthly RSI is testing a multiyear graphical ceiling. The weekly indicator is breaking an ascending channel limit suggesting positive momentum will continue. Short-term pullbacks, should be cushioned at 1.21/1.22, the 23.6% from 2011 lows,” SocGen argues.

The pair ultimately should continue the uptrend towards 1.30 and even probably towards 1.35/1.36, the weekly channel limit,” SocGen projects.

Canadian dollar monthly and weekly chart February 2015 technical analysis

Turning to AUD/USD, SocGen notes that it has confirmed a head and shoulders pattern in the monthly charts, and the downtrend accelerated when the pair broke below the descending channel.

“The monthly indicator is also breaking a critical support, confirming the decline,” SocgGen argues.

With daily RSI diverging positively, a shortterm bounce cannot be ruled out towards 0.80/0.8050. A definite close below 0.7590 will mean an extension in the downtrend towards 0.72, the multi decade channel support,” SocGen adds.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.