USDCAD jumps 100 pips
The greenback rallied after May’s NFP job numbers exceeded expectations. The primary resistance of 1.3740 was quickly broken and attracted more bargain hunters. A bullish breakout has forced sellers to bail out and triggered a move towards April’s high near 1.3840, putting a dent in the bearish bias in the near term. 1.3760 is fresh support, and 1.3800 is a crucial obstacle to lift before the US dollar can continue the push.
EURGBP weekend gap pressures the Euro
The Euro was licking its wounds after the European elections over the weekend when French President Macron called for a snap election. Prices hit a 21-month low as a lack of buying interest left the door open for momentum selling and triggered a new round of sell-off. 0.8400 is the next stop, with an oversold RSI likely to attract some dip buyers. However, as sentiment turns, bears could sell into strength at the first resistance of 0.8480, covering the weekend gap.
UK 100 seeks support
The FTSE saw another dip towards the 8,000-level saved as a bounce lifted prices slightly higher. The rebound came under pressure at the brief swing high of 8300 and the 20-day SMA. A bullish breakout would prompt sellers to cover and ease the downward pressure, paving the way for a recovery to the previous consolidation area around 8425. Failing that, the recent support at 8125 is critical to prevent a broader liquidation.
