Speculation over John Taylor possibly being the next Chair of the Fed has helped the USD regain some strength. This is especially apparent on the DXY, which bounced from the 92.75 support using a double bottom pattern and started forming the right shoulder of the iH&S pattern. There is no buy signal yet but the potential breakout of the 94.2 resistance should trigger one.
We talked about the EURJPY yesterday. The pair was approaching an important support, so we were getting ready for a breakout with a pending order below the support. It was a good call to wait for a breakout rather than sell with instant execution as the breakout did not happen and the price went higher. We should now be approaching the upper line of the correction pattern.
The 1.259 mark proved to be a strong resistance yesterday on the USDCAD pair. That is why it is going to be even more exciting to track this pair and wait for the breakout today. We now know that both the resistance (green) and the support (blue) are important, so the breakout should be powerful and should allow the price to create significant directional movement.