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GBP/USD, USD/CAD, USD/MXN – North American Session Daily Forecast

Kenny Fisher

GBP/USD has posted slight losses on Tuesday. In the North American session, the pair is trading at 1.2945, down 0.11% on the day.

Brexit Drama Continues

After climbing 2.1% last week, the pound has leveled this week. With parliament debating a withdrawal bill over the next few days, Brexit fever remains high and we could see further volatility from the pound. The government is adamant that the U.K will leave the EU on October 31, so it promises to be a dramatic week.

Technical Analysis

The pound tested the symbolic line of 1.300 on Monday and I expect this line to be further tested this week. The pound-to-dollar ratio has increased significantly in the month of October, as GBP/USD has jumped 5.1%. Above, there is resistance at 1.3960, which has not been tested since May. On the downside, there is resistance at 1.2870.

GBPUSD 4-Hour Chart

USD/CAD

USD/CAD is flat in Tuesday’s North American session. Currently, the pair is trading at 1.3090, up 0.01%.

Canadian Retail Sales Slip

Canada posted soft retail sales in August. Retail Sales declined by 0.1%, compared to a gain of 0.4% a month earlier. The core reading declined by 0.2%, its third decline in four months. Despite the soft data, the Canadian dollar has managed to hold its own against the weak U.S. dollar.

Technical Analysis

USD/CAD posted gains on Monday, and the pair is putting pressure on the support line of 1.3070. The trend is down, so I expect the pair to break below this level during the week. Below, we find support at 1.3020, which has held since mid-July.

USDCAD 1-Day Chart

USD/MXN

USD/MXN has posted slight losses on Tuesday. In the North American session, the pair is trading at 19.09, down 0.15% on the day.

Technical Analysis

USD/MXN pushed below support at 19.10 on Tuesday, for the first time since the end of July. The pair has recorded three straight losing weeks, so the trend is down. We could see USD/MXN break below this line later in the week. Below, there is support at the round number of 19.00, which has psychological significance. It has held firm since July 31.

This article was originally posted on FX Empire

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