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USDCAD Retracement Below 1.1500 Could Print

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EURUSD Hits Confluence of Resistance
The R3 as well as the 50%

Retracement level of the 1.6743/1.5994 move happens to be within 12 points of each other and may just thwart any move higher for the day. It's interesting that yesterdays USD and JPY strength came courtesy of the slackened equity market. Today's USD and JPY weakness have come without much equity strength. In fact, it looks like most indexes will close unchanged with the Dow and Russell 2K negative for the day. Not really much of an inspiration, so it must be coming from the higher than expected CAD housing starts and lower than expected USD new unemployment claims. The one number that may have been overlooked is the continuing claims unexpected rise. That’s great that initial job losses slowing, but that number hides that fact that those laid off are not finding new jobs. Consumer Sentiment was unexpectedly higher than expected yesterday, but their wallets aren't following their feelings, ONE HUGE PROBLEM! No US consumer spending lengthens the bottom.

EURJPY and USDJPY Both Hit Initial Retracements From Yesterday
Both pair took to flight today and have reached the initial retracement values mentioned in yesterday’s posts. The USDJPY actually went a bit further and touched the 50% retracement line. I have included both charts below. I think these are initial retracements and we may see a little more pullbacks, but I don't think the moves lower is over yet. I mentioned yesterday that I thought it may take a few days to get to the 126.61 area on the EURJPY and still feel that way. In fact today’s action only affirms that feeling. I'll be looking for failures to reestablish trades EURJPY shorts, and I have to balance my desire to go long on the USDJPY with my concern for the down side.

USDCAD Retracement Below 1.1500 Could Print
Looking at the chart below makes me think there may be a stronger pull back from the shorter line to the longer line below. I would prefer there were some secondary target to look at but there just isn't at this point. If there is another Bounce away from the shorter line this morning I may take this as a short and play it with a very light touch keeping my risk on the trade just above 1.1632.