Recent price action signals a more cautious approach to risk exposure in FX. High beta currencies such as the CAD have had sellers emerge to stem recent gains. A bullish daily candle formation in USDCAD points to buying interest in the 1.2125 area and room for a move higher in range. Our initial targets are towards 1.2360 and then the May highs near 1.2565. Safe haven currencies such as the JPY have had investor buying. A short-term topping pattern in EURJPY signals selling interest near the 140.05 range highs and scope for downside towards targets near 137.00 in the near term.
The post Barclays: Trades for the week ahead: Long USDCAD and short EURJPY as risk aversion extends appeared first on www.forextell.com.