The British Pound (GBP/USD) has surged nearly 2.4% from its yearly low, marking a potential fourth consecutive weekly advance. The currency is now testing resistance at the 200-day moving average, around 1.3428, which aligns with the median line of the October pitchfork and the February low-day close at 1.3465/74. A daily close above this zone could signal a more significant reversal, with subsequent resistance levels at 1.3558 and 1.3590/93. Support is found at 1.3381/89, with a break below 1.3302 invalidating the October uptrend.
Meanwhile, the Canadian Dollar (USD/CAD) has dropped over 2.5% from its yearly high, testing key support at 1.3941/49. This level is crucial, as a break below could resume the downtrend, with further support at 1.3890 and 1.3854. Resistance is noted at 1.4014, with a close above 1.4079 needed to suggest a trend reversal. The upcoming Non-Farm Payroll and Canada employment reports on Friday could introduce volatility.
The Swiss Franc (USD/CHF) has also fallen more than 2.5% from its yearly high, approaching a major support pivot at 8200/15. A break below this level could push prices toward 8157 and 8120/25. Resistance is identified at 8250, with a close above 8278 required to indicate a potential trend reversal. Event risk from Switzerland is limited, so the US Dollar is expected to drive price action.
This week's event risk includes the RBA and BoE rate decisions, US Midterm elections, Eurozone CPI, and the Non-Farm Payroll report. Traders are advised to monitor these developments closely, as they could significantly impact market movements.