Top 3 Currency Pairs Teeming With Profits

The euro bulls have repelled the bears' attack yesterday though the bears are again making headway. Will they be able to break through today? The Philadelphia Fed Manufacturing Index surprised on the upside, lending support to the U.S. currency. Our short euro position became more profitable in return. How does our other open position do? Just great. We have also identified a prospective candidate for opening a brand new position. Get ready!

EUR/USD - Downside Momentum Is Building

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EUR/USD has certainly moved lower yesterday. The bears took the rate almost to the rising purple support line, close to the lower border of the orange support zone. The combination of these factors spurred the bulls into action and the pair closed the day with only slight losses.

Earlier today, the bulls have been building upon yesterday's momentum and took the pair to the gap as marked by the red horizontal zone. This line is keeping their gains in check. This is a reversal and it's sending the pair lower to below 1.1200 currently.

Let's see the daily indicators now. They' re still on their sell signals, supporting the sellers. This suggests that another move to the downside is just around the corner. Should we see such price action, the sellers' first target would again be the rising purple support line. If that´s broken, then our initial downside target is the second objective.

USD/CAD - Testing the Lower Border of the Consolidation

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We have written on Tuesday these words about the combination of major short-term resistances:

(..) This resistance is marked by the combination of the 70.7% Fibonacci retracement, the upper border of the purple rising trend channel, the previous highs and the upper border of the red declining trend channel.

In all previous instances, the bulls haven't had much success breaking higher. It increases the likelihood of seeing another reversal down the road this time, too. Lower USD/CAD values remain likely in the very near future.

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