Following its U-turn from 1.1490-1.1500 resistance-region, EURUSD bounced off the seven-week long ascending support-line, near 1.1295, which in-turn signal brighter chances for the 1.1400 and the 1.1420 to reappear on the chart. However, 100-day SMA level of 1.1480 and the 1.1490-1.1500 could confine the pair’s upside past-1.1420, if not then the 1.1560, the 1.1610 and the 1.1660, including 200-day SMA, might flash on Buyers’ radar to target. If at all the pair fails to sustain recent move and registers a daily closing under 1.1295, it’s drop to 1.1260 and 1.1215 can’t be negated. Also, pair’s additional downside beneath 1.1215 may make the 61.8% FE level of 1.1120 as market favorite.
Alike EURUSD, the NZDUSD also rests on immediate TL support, here it is 0.6580, break of which is necessary for the pair to decline further in direction to 0.6550 & 0.6500 numbers to south. Should prices continue trading down after 0.6500, the 0.6470 and the 0.6470 can regain Bears’ attention. Alternatively, the 100-day SMA level of 0.6670 and the 0.6685-0.6700 region may limit the pair’s near-term advances, which if broken highlights the importance of 0.6755, including 50-day SMA. Assuming the pair’s successful rise beyond 0.6755, the 200-day SMA level of 0.6815 and the nine-month old resistance-line, at 0.6925, could lure the Bulls.
In spite of its latest pullback, USDCAD is less likely to be termed weak unless it prints a W1 close below 1.3560-40 support-zone. As a result, the pair is expected to stretch its north-run a bit longer prior to confronting an upside barrier, i.e. the 1.3790-1.3820 resistance-confluence. Given the pair manage to conquer the 1.3820 hurdle on a weekly closing, the 1.3930 and the 1.4000 might be targeted if holding long positions. Meanwhile, break of 1.3540 can trigger the pair’s declines to 1.3440 and the 1.3380 rest-points, breaking which 1.3300 and the 1.3230 may please the sellers.
Not only a downward slanting trend-line at 0.9935 but the 1.0005-10 resistance-area also restricts the USDCHF upside. Hence, the pair needs to clear both these resistances in order to aim for 1.0040 and the 1.0080 ahead of looking at the 1.0110 & the 1.0130 figures to north. On the contrary, the 0.9840 and the 0.9815 seem adjacent supports for the pair, breaking which 0.9785 and the 61.8% FE level of 0.9735 might challenge the downside.
This article was originally posted on FX Empire
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