Considering USDCAD’s latest bounce from 1.2800–1.2790 support-zone, the pair seems again heading to confront the seven-week old descending TL resistance, at 1.2890; however, 1.2870 might offer an intermediate halt during its recovery. In case if the quote manages to conquer the 1.2890 mark, it can quickly rise to 1.2920 before targeting the 61.8% FE level of 1.2940. Should the pair fails to sustain latest pullback, the 1.2790 regains its importance, breaking which 1.2770 & 1.2745 could entertain short-term sellers. Moreover, pair’s extended declines below 1.2745 could push traders to closely observe the 1.2700 round-figure and the 1.2655 ascending trend-line support.
Unlike USDCAD, which is a bit far from important resistance, the EURCAD is about to surpass one such critical barrier, namely the 1.5170-80 region, in order to stretch it up-move towards 1.5230 and then to the 1.5270 resistances. Given the pair’s ability to surpass 1.5270, it becomes capable enough to challenge the 1.5330 and target November high near 1.5370. If at all the ECB disappoints global traders and the pair takes a U-turn, the 1.5130 and the 1.5080-75 may reappear on the chart while the 1.5030 and the 1.4975 TL support may limit the price downturn then after. Assuming a larger drawdown beneath 1.4975, the 1.4920 and the 1.4860 could please the Bears.
Having bounced from the 1.7110-15 support-area, the GBPCAD is gradually rising in direction to immediate TL resistance figure of 1.7310. Should the pair clears that hurdle, the 1.7370 and the 1.7400 might come alive as quotes, breaking which 1.7465 and the 61.8% FE level of 1.7580 could get Buyers’ attention. Meanwhile, 1.7200 and the 1.7155 are likely adjacent supports to observe during the pair’s reversal, which if broken could reignite the importance of 1.7110-15 zone. If the pair declines below the 1.7110, the 1.7015 trend-line number and the 1.6940 may confine its additional south-run.
Even if CADJPY has been quite off-late, the pair’s reversal from 100-day SMA indicates likelihood of its another dip to 86.95 trend-line support, with 87.30 acting as a buffer. In case if the pair closes below 86.95, the 200-day SMA level of 86.30 and the 86.00 are expected rests that it could avail ahead of testing the 85.45-30 support-zone. Alternatively, a D1 close beyond 88.00 can again propel the quote to confront the 100-day SMA level of 88.70 and then to challenge the 89.10 trend-line resistance. If prices rally above 89.10, the 89.60 and the 90.00 may become Bulls’ favorite.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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