Having successfully breached 200-day SMA, the USDCAD seems all set to challenge the 1.2910-20 horizontal-region, with 1.2880 likely offering immediate resistance to the pair; though, its further upside needs to confront overbought RSI levels in order to meet the 1.3000 round-figure, followed by 1.3010-15 resistance-area. Given the pair’s extended north-run beyond 1.3015, the 1.3040 and the 1.3200 could please the Bulls. In case if the quote witnesses a pullback from present levels, the 1.2800, the 1.2780 and the 1.2755 may entertain counter-trend traders, breaking which 200-day SMA level of 1.2700 again comes into play. Should prices drop below the 1.2700 mark on a daily closing basis, the 1.2635-30 support-confluence, comprising 100-day SMA and a month-long ascending trend-line, becomes important to watch.
Ever since the CADJPY broke fifteen month old ascending trend-line support, it kept trading southwards and is presently at the lowest levels since mid-2017 that signals 82.80 and the 82.50 as nearby supports. If the pair continued declining after 82.50, the 82.00, the 81.60 and the 81.20 are expected consecutive rests that it can avail prior to testing the 80.65-55 horizontal-line. Assuming oversold RSI plays its role and triggers the pair’s U-turn, the 83.75-85 and the 84.55 may act as immediate resistances for the pair to clear ahead of pushing buyers to target the 85.45-50 zone. Moreover, pair’s additional rise above 85.50 enables the optimists to aim for the 85.80, the 86.50 and the 86.70 resistance-levels.
Considering the AUDCAD’s recent reversal from nearly six-month long descending TL resistance, the pair likely dipping to 0.9900 support-level but its further downside can be confined by 0.9875-70 support-area, including 200-day SMA & an upward slanting trend-line. Should prices refrain to respect the 0.9870 mark, the 0.9855 and the 100-day SMA level of 0.9820 could gain market-attention. Meanwhile, 0.9975 may become adjacent cap for the pair before it can again confront the previously-mentioned TL figure of 0.9995. If the pair manage to surpass 0.9995, also clear the 1.0000 level above D1 close, the 1.0040 and the 1.0075 might be looked upon if holding a long position.
While NZDCAD’s trading above 0.9260 can help it claim the 0.9275 and the 0.9285-90 resistances, the pair may find it difficult to stretch its recovery beyond the 0.9305 horizontal-line. Let’s say the quote conquers the 0.9305 barrier, the 0.9325 and the 0.9350 can act as intermediate halts during its north-run towards 61.8% FE level of 0.9400. Alternatively, the 0.9260, the 0.9230 and the 0.9200–0.9195 horizontal-line might prove themselves as immediate supports, breaking which 0.9145 can acquire sellers’ eye-share. Furthermore, the 0.9100 and the 0.9075 can reappear on the chart if 0.9145 fails to hold the pair captive.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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