U.S. Markets close in 1 hr 5 mins

Technical Outlook For EURUSD, GBPUSD, USDJPY & USDCAD: 08.01.2019

Anil Panchal

EUR/USD

Unless successfully clearing the 1.1490-1.1500 resistance-region, EURUSD is less likely to remain strong for long, which in-turn highlights the importance of 1.1400 & 1.1360 rest-points. Though, an upward slanting trend-line, at 1.1300, might confine the pair’s declines past-1.1360, if not then 1.1260 & 1.1215 may regain sellers’ attention. Alternatively, breach of 1.1500 enables the pair to aim for the 1.1550 and the 1.1580 numbers to north ahead of confronting the 1.1610-20 upside barrier. Moreover, quote’s sustained up-moves beyond 1.1620 could avail 1.1650 as an intermediate halt before targeting the 1.1720-30 resistance-zone.

GBP/USD

GBPUSD is another major that’s struggling with immediate resistance, namely the 1.2795-1.2800 TL, break of which is required for the pair to escalate its recovery to 1.2830 and to 1.2880 levels. Should the pair manage to conquer 1.2880 hurdle, it can rally to the 1.2950, the 1.3000 and the 1.3035-40 consecutive upside figures prior to challenging the 1.3065-70 horizontal-area. In case prices take U-turn from current levels, the 1.2700 and the 1.2660 may appear in limelight whereas the 1.2610 and the 1.2545-35 could restrict additional south-run. Given the pair’s refrain to respect the 1.2535 support, the 1.2475, the 1.2430 and the 61.8% FE level of 1.2380 can become Bears’ favorites.

USD/JPY

Even after gradually rising from its last-week’s lows, the USDJPY still needs to cross the adjacent TL resistance, at 109.00 now, otherwise it’s slide under the 108.65 support-line can reprint 108.00 & 107.00 on the chart. If at all the pair continue trading down beneath 107.00, the 106.75, the 105.50 and the 104.75 might come back as quotes. Meanwhile, pair’s advances above 109.00 may have 109.60 and the 110.25-30 as follow-on benchmarks to avail, which if broken could please the buyers with 110.80 & 111.50. However, the 112.20-30 might question the pair’s strength after 111.50, breaking which the 112.70, the 113.00 and the 113.20 could lure the Bulls.

USD/CAD

Unlike all the aforementioned pairs, USDCAD has already dropped below a quarter-old ascending trend-line and 50-day SMA, which in-turn speaks louder of its weakness towards testing the 1.3225 and the 1.3160 mark, comprising 100-day SMA. Assuming the pair’s extended downturn past-1.3160, the 200-day SMA level of 1.3065 and a year-long upward slanting support-line, at 1.2990, may be aimed at if holding short positions. On the contrary, a daily closing above 50-day SMA level of 1.3320 can push the pair to support-turned-resistance line of 1.3360 and then to 1.3385. It should also be noted that pair’s successful rise beyond 1.3385 could help it target the 1.3440 and the 1.3500 round-figure.

This article was originally posted on FX Empire

More From FXEMPIRE: