CADJPY pair back on track
The Canadian dollar began the fightback as inflation jumped higher in Japan. On the chart, bulls are still trying to regain the upper hand after bouncing 300-pips higher, which could be a sign of a recovery. Despite random selloffs, the price seems to be well-supported above 105.00. A close above 106.50 would threaten 108.70, a key level that has capped recent breakout attempts and its breach could send the loonie to 109.50.
EURUSD jumps higher
The US dollar remained on the back foot as the pair grinded higher. A previous slip below the daily support of 1.1100 put the bulls on the defensive before a subsequent jump towards the recent false spike. A drop below the base of the rebound will invalidate the momentum and signal that a sell-off could be on the horizon. 1.1180 is the first hurdle to clear to weaken the short side and drive prices towards 1.1300.
GER 40 hits resistance
The Dax lost some ground after hitting a fresh high above 19000. A break below 18900 has led bulls to take some chips off the table and this could be a pivotal point for the price action in the coming week. The medium-term trend would remain bullish as long as the quote is above 18600. The pullback has driven the RSI into the neutral area, leading to a test of selling commitment. 18750 is a fresh support with 18400 as a second layer of defence. A close above 19150 would trigger a runaway rally.