AUD/USD, GBP/CAD Seek Direction Ahead of Nonfarm Payrolls
The AUD/USD pair was quite choppy on Thursday, ending the day in the red after advancing up to 0.7062 intraday, following stocks in their way higher at the US opening.
Nevertheless, positive US data finally won the battle and the pair quickly reverted its gains. Also, the sharp intraday decline, is a clear sign of sellers waiting for higher levels to add.
Technically, the 1 hour chart shows that the price is below a bearish 20 SMA, whilst the technical indicators hover around their mid-lines, unable to clearly determinate a certain directional strength.
In the 4 hours chart, the 20 SMA maintains its strong bearish slope around 0.7040, now the immediate intraday resistance, whilst the RSI indicator hovers around 38 and the Momentum indicator aims higher below the 100 level, limiting chances of a stronger advance.
Meanwhile the GBP/CAD gave back all of its early week gains, as the British Pound weakened further on another weak UK macroeconomic release.
Oil prices posted a tepid intraday advance, giving the Canadian dollar some intraday strength that resulted in a fresh 2-month low for the cross at 2.0026.
Technically, the 1 hour chart shows that the bearish trend is still in place, with the price below a bearish 20 SMA as the technical indicators resume their decline well below their mid-lines.
In the 4 hours chart the 20 SMA maintains a strong downward strength well below the current level, whilst the technical indicators have lost their upward strength well below their mid-lines, ready to resume their declines.