Having breached five-month long ascending trend-line, the USDCAD seems well inclined to test the 200-day SMA level of 1.2865, which if broken could open the door for the pair’s drop to 1.2810-2800 support-zone. In case sellers refrain to respect the 1.2800 mark, the 1.2730, the 1.2700 and the 1.2620 are likely following numbers to appear on the chart. Should prices witness pullback from present levels, the support-turned-resistance line near 1.2955 and the 1.3000 round-figure could entertain short-term buyers prior to challenging them with 1.3050, comprising 100-day SMA. Moreover, pair’s sustained trading beyond 1.3050 can avail 1.3100 as an intermediate halt while aiming the 1.3170 TL resistance.
EURCAD’s bounce off the 1.5060-5050 support-zone can help it revisit the 1.5140 and the 1.5170 resistance but immediate downward slanting TL, at 1.5230, may limit the pair’s further upside. Even if the pair manage to surpass the 1.5230 barrier, it could only target 1.5300 level as a bit longer resistance-line, at 1.5345, might confine the quote’s additional rise. Meanwhile, a downside break of 1.5050 highlights the importance of 1.5000 psychological magnet, breaking which 1.4940 and the 1.4900 can please the Bears. Given the pair’s extended downturn beneath 1.4900, the 1.4840 and the 1.4800 may gain market attention.
In spite of the GBPCAD’s recent U-turn, the pair might find it hard to justify its strength unless clearing the 1.7165-70 resistance-confluence, including 100-day SMA & six-month descending trend-line. If at all there is a D1 close beyond 1.7170 by the pair, the 1.7280 and the 200-day SMA level of 1.7385 can become Bulls’ favorites. Alternatively, 1.6920-10 can offer nearby support to the pair during its decline, which if broken could drag it to 1.6825 and the 1.6720 numbers. Additionally, the 1.6590 and the 61.8% FE level of 1.6450 might appear in the pessimists radar past-1.6720 break.
With the adjacent upward slanting trend-line indicating AUDCAD’s strength, the pair is likely heading towards 0.9430 resistance-line but overbought RSI might disappoint optimists then. In case the pair crosses the 0.9430 upside hurdle, the 0.9475, the 0.9515 and the 0.9560 should be watched carefully while holding long positions. On the downside, 0.9370 TL and the 0.9330 can act as buffers ahead of visiting the 0.9315 rest-point. However, pair’s dip beneath the 0.9315 might not hesitate recalling the 0.9270 and the 0.9215, encompassing 61.8% FE, as quotes.
This article was originally posted on FX Empire
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