After the overnight move to 1.3431, the highest level since 2004, the bearish threat to USD/CAD is beginning to fade, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets.
Conditions are falling into place for a seasonal Q4 rally, says Ari Wald, Technical Analyst at Oppenheimer.
Gold should be able to clear key resistance and embark on a genuine bull run, according to Walter Zimmermann, Senior Technical Analyst at United-ICAP.
After trading towards the 1.18 target there is a temptation to call the 4th wave correction complete, but there could be one more high before the downtrend resumes, says Tony Sycamore at Commonwealth Bank of Australia.
German equities have reached a 10-year low in relative strength versus global equities and are set for a continued period of underperformance, according to Riccardo Ronco, Head of Technical Analysis at Aviate Global.
Near- to medium-term consolidation will help alleviate an overbought condition in the US Dollar Index and allow for the resumption of the primary trend, according to Peter Lee, Chief Technical Strategist at UBS in New York.
A daily close below support at 1.3120 would cause the current sideways consolidation in USDCAD to turn into a deeper corrective phase, according to George Davis at RBC Capital Markets.
Although sentiment indicators are at a pessimistic extreme and suggestive of a contrarian buy signal, Ari Wald, Technical Analyst at Oppenheimer, urges caution.
Range bound equity markets should be interpreted as bearish continuation patterns, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.
The risks to the S&P are to the downside while it remains below 2040/50, according to Tony Sycamore, Director Institutional Foreign Exchange at Commonwealth Bank of Australia.