In the dynamic world of foreign exchange markets, traders are always on the lookout for signs and signals that can help them make informed decisions. Currently, there is a growing anticipation among traders of short-term weakness in the US Dollar (USD) against the Canadian Dollar (CAD) and the Australian Dollar (AUD). This shift in sentiment is driven by a confluence of factors that are shaping the forex landscape in interesting ways.

The GBP/CAD Performance 

GBPCAD is about to resume the trend.

GBPCAD is trading within a bullish trend and an ascending structure. The behaviour of this particular trend is such that the market forms bullish continuation patterns / corrective waves when an impulse wave is done which suggests that there is a higher probability chance that the market will repeat the same behaviour. At the moment the market is forming a corrective wave.

According to this price action, traders are bullish and anticipate the market to bounce from the lows of the structure as well as the support zone before confirming a push to the upside.

The EURGBP Performance 

The EURGBP drop is on the cards.

EURGBP is trading within a bigger descending structure. At the moment the market is forming a bearish corrective wave within the descending structure. The market is also approaching the resistance zone around 0.86246 as well as the top of the inner ascending structure. 

According to this price action, traders are bearish and are waiting for the market to reject the resistance zone before looking for bearish trading opportunities back to the support zone around 0.85882.

Read More: GER30 Has Pushed Below Support Again

The GBPAUD Performance 

GBPAUD is preparing to take off.

GBPAUD is trading within a bullish trend. Here we see how the market has been respecting the ascending trendline and bouncing from previous support zones.  At the moment the market is trading at the support zone around 1.93570 and has retraced to the 50.0 level of the Fibonacci retracement of the previous impulse wave.  According to this price action, traders anticipate the market to complete the retracement around the current levels and resume the trend before looking for trading opportunities.

Final Thoughts On Today’s Analysis 

In conclusion, traders are closely watching the evolving dynamics of the forex market. Moreover, the growing anticipation of short-term weakness in the US Dollar against the CAD and the Australian Dollar. Economic indicators, central bank policies, commodity prices, risk sentiment, and technical analysis are all contributing factors to this outlook. As traders adapt to these changing conditions, they will continue to seek opportunities and manage risks in the dynamic world of forex trading. Watch our YouTube channel for more analysis.