 Yen is encountering renewed selling pressure, particularly against European majors. This weakness is partly attributed to the rising treasury yields that have dampened enthusiasm for the Japanese currency. However, its losses remain contained for the moment. On the other hand, Australian Dollar is seeking to prolong its short-term rally, most notably against New Zealand Dollar. The Sterling is trailing closely as the second strongest, buoyed by buying against a weaker Euro. Conversely, the Dollar is currently lagging, second only to Kiwi in terms of weak performance, followed closely by Yen. Canadian Dollar is exhibiting a mixed performance as market participants eagerly await Bank of Canada's rate decisions. Technically, there is prospect of a bounce in EUR/CAD, considering that it's now close to 1.4236 cluster support (38.2% retracement of 1.2867 to 1.5111 at 1.4254). Break of 1.4510 minor resistance will suggest that the corrective fall from 1.5111 has completed and bring stronger rebound back to 55 D EMA (now at 1.4615) and above. Nevertheless, decisive break of 1.236 could path the way to 61.8% retracement at 1.3724. Direction of the cross will likely become clear shortly after the Bank of Canada's decision. |
