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Forex Recap: EUR/USD, USD/CAD, Gold, EUR/AUD

The EUR/USD broke below the week-long support around 1.3750.


(EUR/USD 4H Chart)

Following a week of volatile swings, it seems like bears won the battle and are still in charge.

As EUR/USD slides, we should monitor the 1.3660-1.3680 area, which contains the 61.8% retracement, and a previous support/resistance pivot.


I have been waiting for a throwback in the USD/CAD, but not one that accelerates to where I was considering going long.


(USD/CAD 4H Chart)

There was some initial reaction from the broken triangle resistance as support, but the market quickly pushed through and the USD/CAD is poised to test the triangles support. 

Now the failed bullish attempt from last week looks like exhaustion. While there might be some near-term and short-term support when the market tests the triangle support and previous support pivot at 1.02-1.0210, the bullish outlook might be limited. In fact, if there is a breach below 1.02, we can now turn to consider selling on a rally.

Gold continues to slide. I would still selling the next rally that can bring the 4H RSI to 60, and price back to about 1330. 


(Gold 4H Chart)

If the slide continues though, we can consider buying around the 61.8% retracement area, which coincides with the top of January's general consolidation zone. 2014 price action has been bullish, and we should respect that prevailing trend if the current dip extends to 61.8% retracement.

Finally, the EUR/AUD is a pair that has been moving sharply and persistently down this week. 


(EUR/AUD 4H chart)

The dip we have seen in the past 2-3 weeks has broken below a rising trendline, completed a head and shoulders, and is pushing below the 200-day SMA for the first time since April 2013.

This is a pair that I will be looking for to fade a rally.